Monday, December 14, 2009

A sweet revenge

As RLD and SP look to reclaim their lost territories, sugarcane farmers in UP suspect UPA's allegiance towards Sugar Mill owners, says anil pandey

That was indeed a historical day in an agrarian movement. The collective voice of thousands of sugarcane farmers was so strong that the Centre finally had to capitulate. In many ways, it evoked the memory of 1988 when a large multitude of farmers had gathered at the Boat Club to make their voice heard. Although the latest movement lacked the similar impetus, none the less, it was enough to stir the capital. In fact, managing the November 19 rally became an uphill task for Delhi Police too, as the city came to a grinding halt and witnessed massive traffic jams. And irrespective of what Delhites thought about them, farmers kept trampling whatever came in their way. It appeared as if Delhi for them was a mere manifestation of power-brokers that they so despise. Trampling Delhi was like trampling these lawmakers.

The rally of these wronged-against farmers had a momentum of its own. In a way, it was not instigated unlike generally held political rallies. In fact, the cadres of the Rashtriya Lok Dal (RLD) were busy arranging for vehicles to ferry farmers to Jantar Mantar. It came as a pleasant surprise to them that the farmers had already arranged their conveyance and that too with their own money. Clearly, for once, a movement was not fabricated from the beginning.

It was therefore not surprising that sugarcane farmers from western Uttar Pradesh had gathered at Jantar Mantar cut across all social and political lines. Farmers, waving sticks of cane, outnumbered those who were waving flags of a particular political party. Farmers were peeved over the new ordinance by the Central government that advocated setting the Fair and Remunerative Price (FRP) of cane for the agriculture year 2009-10 at Rs 129.85 per quintal. This essentially means that if the respective state governments fix the price of procurement that is higher than the above quoted band, then the margin amount will have to be borne by the state government and not the sugar mill owners. Clearly, it appeared as a respite for the owners.

However, the burgeoning farmers' movement and the univocal support by the Opposition parties made the government sit up and listen. Subsequently, the UPA regime and, more importantly, its agriculture minister Sharad Pawar had to reverse the decision. The government will bring in amendment in the current ordinance that will ensure that if the state government fixes the State Advisory Price (SAP) higher than the FRP, the margin will have to be borne by the mill owners.

However, farmers from western Uttar Pradesh still feel cheated. Referred at times as the “Sugar bowl of India”, Uttar Pradesh is the largest producer of sugar in the country. However, the farmers in the state get far less a price for the cane than their counterparts in other states in India. In adjoining Haryana and Punjab, the MSP for per quintal cane is around Rs 210. The corresponding price in UP is merely Rs 145. In Maharashtra, farmers are paid in a band of Rs 260-270 whereas in Gujarat, it is slightly lower at Rs 210-230. In Maharashtra, sugar mills also sell out dividends to the farmers.

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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative