BJP slams Centre's policy on sugarcane | delhi | Hindustan Times
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BJP slams Centre's policy on sugarcane

BJP on Wednesday attacked government's decision to abolish profit sharing clause in the Sugarcane Control Order saying farmers would not be able to get better price even though mills are currently earning huge margins.

delhi Updated: Dec 16, 2009 15:42 IST

BJP on Wednesday attacked government's decision to abolish profit sharing clause in the Sugarcane Control Order saying farmers would not be able to get better price even though mills are currently earning huge margins.

Participating in a discussion in the Rajya Sabha, party leader Prakash Javadekar said sugar was selling at Rs 40 per kilo though the rate should have at best been Rs 25.

Mills have paid only Rs 160 per quintal for sugarcane and as such they would have incurred a cost of not more than Rs 16 per kilo, he said during the debate on the Essential Commodities (Amendment and Validation) Bill.

The government issued the Sugarcane Control (Amendment) Order on October 22 deleting the clause (5A) that prescribed profit sharing formula while inserting another clause (3b) eliminating the power of states to fix a different price for sugarcane other than the one fixed by the Centre.

Questioning the Centre's decision for a change from State Advised Price (SAP) to Fair and Remunerative Price (FRP), Javadekar said the government was trying to "impose its price" on farmers.

"Change of words do not change the on-going injustice against farmers," he said adding that earlier it was done in the name of MSP and now in name of FRP.

He asked the government to control sugar prices only if they can do it effectively, "otherwise leave it to market forces".