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Sugar cane growers are caned by the so called ‘Fair and Remunerative Price (FRP)-. For the 2009-10 season FRP payable by sugar mills for cane purchases has been fixed at Rs 129.84 a quintal which is neither Fair nor remunerative. The FRP announced by the Centre works way below the State Advised Prices (SAP) declared by various State Governments for the current sugar season – Rs 162.50-170 a quintal by Uttar Pradesh, Rs 170-180 a quintal by Punjab and Haryana, and Rs 143.74 a quintal (linked to 9.5 per cent recovery) by Tamil Nadu even though a little up from the SMP of Rs 107.76 a quintal announced in June. And cane cycle of cultivation is of longer duration -12-14 months and is subject to cyclical down turn in acreage.
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Growers are financially stretched during the long period between planting and harvest. It would help them if mills pay 40-50 per cent of the FRP say, six months after planting, and a substantial part of the balance at the time of procurement. Sugar mills will have to demonstrate they are ready to treat cane growers as partners, and share their burden and risks. |
Farmers’ representatives belonging to various sugar mill command areas have condemned the fair and remunerative pricing. Mr R. Viruthagiri, General-Secretary, Consortium of Indian Farmers Associations – Tamil Nadu unit, said that the pricing was neither fair nor remunerative.
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Paddy growers Punished : |
Input costs increased by 15%, labour charges hiked by 50% thanks to NREGS wage structure and cost of living inflamed by 13%. Production of paddy is down by 16 mn tonnes due to drought and floods. Yet government thought it fit to throw just a 50 rupee note on the face of the farmers by way of ‘Baksheesh’ for all the troubles and travails they are undergoing and risks they are taking in these times of drought and floods. At MSP of Rs 1000 for paddy the rice cost works out to Rs1,600 per quintal. Price of rice in the market is in the range of Rs 3000 to Rs 4000 per quintal, more than double of MSP. Who is cornering the balance amount of Rs 1400 to 2,400 per quintal then? It is the rice millers, whole sale sharks and retailers combine for little or no value addition. If this is not naked day light robbery, what else is? The labour of farmers is robbed by the above mentioned combine facilitated by government policies. And the government calls itself as ’farmers friendly”. What an irony!
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Weak monsoon-Withered kharif crop output :
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| The kharif foodgrains output for 2009-10 is estimated to be 96 million tonnes (mt), the worst since the 87 of 2002-03, which was also a drought year like the present one. Compared to last year’s 117 mt, it represents a whopping 21 mt or 18 per cent decline. |
Much of this decline has come from rice, with the ‘first advance estimates’ released by the Ministry here on Tuesday, pegging the crop size at 69 mt. That makes it over 15 mt below last year’s level and also the lowest since the 63 mt of 2002-03. |
| The 15 mt of rice with the Food Corporation of India, as on October 1, is almost thrice the opening buffer stock norm of 5.2 mt. |
Sugarcane :Production during 2009-10 is expected at 249 mt, which is marginally higher than the 237mt of 2004-05.This could keep sugar prices high at least over the next year. |
Cotton: production is expected to be at the same level as last year. However, SIMA estimates cotton production to be less by 10% and demanded ban on cotton exports.
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Free up Farming from State Interference-Sharad Joshi :
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| Agriculture needs to be freed from State interference. Agricultural land must be recognised as a part of the farmer’s private property that he has a right to acquire, maintain and dispose of according to his wish. |
Instead of promoting reforms that cause fragmentation of land, measures should be taken to permit at least operational consolidation, so that it encourages production and application of new technologies. Government intervention in the supply and distribution of agricultural inputs such as seeds and fertilisers should be discontinued.
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| The institution of Agricultural Produce Marketing Committees (APMCs), dominated by middlemen and local political satraps, should be replaced by electronics spot and futures markets as the main channel of agricultural marketing. This by itself should take care of the problem of scarcity of investments in agriculture. |
| The fetish about formal credit institutions needs to be given up as they have shown their incapacity to develop the flexibility and skills that are required for dealing with a sector dominated by natural phenomena. |
| Institutions based on the private moneylender will have to be encouraged, with proper registration and monitoring . The Government should not impair farmers’ access to markets and technologies. |
| Extension services required for bridging the gap between the laboratory and the farm should be left entirely to private initiative. A salaried extension worker has failed far too long to deserve a fresh lease of life. |
| A system based on payment of a substantial proportion of the incremental income in the first year would encourage knowledgeable experts to enter the field of extension and render their services for economic and monetary incentives. BL 041109 |
