This Article is From Nov 28, 2013

Two sugarcane farmers commit suicide as protests rage for higher prices

Two sugarcane farmers commit suicide as protests rage for higher prices
Mumbai: India's sugar belts are on the boil as anger and desperation spills out on the street as farmers agitate for a higher price for their cane.

In Uttar Pradesh's Lakhimpur Kheri district, sugarcane farmer Satyapal Singh, who was burdened with a Rs 2 lakh loan, hung himself from a tree.

On Wednesday, another debt-ridden cane farmer consumed pesticide outside the Karnataka legislative assembly in Belgaum.

Meanwhile in Maharashtra, hundreds of sugarcane farmers poured out on the streets of the sugar belt of Sangli, Satara, and Kolhapur, blocking roads, burning tyres after a two-day shut-down call by MP Raju Shetty of the Swabhimani Shetkari Sangthna.

Sudhir Khot, a farmer from Sangli, said, "We demand 3000 rupees for per ton of cane. Our protest is against Agriculture Minister Sharad Pawar who can't assure us a decent livelihood". 

Farmers complain of high input costs of growing sugarcane that stands in the fields for 12-15 months. Spiralling costs of pesticides, fertilisers, power and water have made it unaffordable for many to grow cane, they claim.

While crushing season has begun, the Maharashtra government has yet to fix the price sugar mills must pay to farmers to buy the cane.

Sugar mills in the state are mostly controlled by Congress and NCP politicians and are simply unwilling to pay.

They blame the plunging prices of sugar across the world for their inability to pay farmers. Compared to last year, wholesale price of sugar has tanked by at least Rs 6000 per tonne.

Praful Patel, Union minister for Heavy Industries and senior NCP leader, says it's a peculiar situation.
"Sugar factories have paid high rates to farmers for two reasons: it's a legitimate demand from farmers and industry could support high prices for cane since eventual price of sugar was good. But now in this peculiar situation, the government in Maharashtra is considering how state can support mills. There is a move to give soft loans to mills so they can pay farmers," he says

The Satara Kisanveer Shakari Sakhar Karkhana controlled by Congress MLA Madan Bhosle is accepting cane from farmers for crushing, unlike Uttar Pradesh where there is a stand-off between farmers and mill owners.

But the Karhana says it's only willing to pay Rs 1700 per tonne of cane. It has a few days before it makes payments to farmers and the management hopes the issue will be resolved by then.

The Managing Director of the mill Vijay Wagle explains the math.

"The cost of production for factories is 1000 rupees per quintal and the price of sugar on the market is 2650.  Therefore, if we deduct 1000 from 2650, then the amount left is 1650 and that will be the price of sugarcane."

But farmers are not buying this, as mills also sell molasses, alcohol and power; all by-products of sugar that bring in good money for the factories.

While the Allahabad high court has issued an order to Uttar Pradesh government asking it to end the deadlock between famers and mill owners within a week, in Maharashtra all eyes are now on a committee under Union Agriculture Minister Sharad Pawar, which many hope will ensure a sweet ending for all.

 
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