Raju Shetti demands law making FRP payment to sugarcane farmers in one instalment compulsory

“Swabhimani Shetkari Sanghatana has launched two days of protest on Thursday and Friday. Our protest is in Kolhapur and Sangli. We are drawing the state government’s attention to the plight of sugarcane farmers. If it remains mute, we will be forced to intensify our agitation across Maharashtra. It will get very aggressive.”

The farmer leader argues the decision to allow FRP payment in two instalments helps mills to withhold legitimate payments to farmers.

“The state government should bring a legislation making FRP payment to farmers in one instalment. They should bring the legislation in the coming winter session and get it passed in both the state Legislative Assembly and Council. Once it becomes an Ac, sugar mills will have to enforce it. Apart from that, there should be strict provision for punishment to those violating the law,” he said.

Sugarcane crushing in Maharashtra began on October 15. Due to intense rains, only 32 of the 202 mills started operation. In August, the cabinet committee on economic affairs fixed the FRP for sugarcane at Rs 305 per quintal.

“Sugar mills are no longer banking on sugar production. They are using a sizeable proportion of sugarcane for ethanol making. And ethanol is fetching higher returns. Therefore, sugar mills should share their profits with farmers. There is no reason why they should not pay farmers in one instalment. They should also make a payment above the FRP,” said Shetti.

“Once the farmers sell their sugarcane to sugar mills, they should be paid the entire amount within 15 days. What is the rationale behind holding back the payment or making part of the payment? Through the instalment payment rule, the state government has given rights to sugar mills to further exploit the farmers. They can prolong payment for one year. Moreover, how will the farmers survive without getting money for sugarcane sold to mills? They have to start preparations for the next plantation. And what about money for family needs?”

The FRP is a minimum price which is mandatory for sugar mills to pay to farmers for procuring the sugarcane. It’s calculated based on recommendations made by the Commission of Agriculture Costs and Prices after consulting state governments, sugar federations and other stakeholders. The FRP for sugarcane for 2022-23 has been fixed at Rs 305 per quintal for a basic recovery rate of 10.25 per cent.

Another demand raised by the SSS leader was that the Centre should increase sugar price from Rs 31 to Rs 35 per kg and ethanol price by Rs 5 per litre.