Sugarmills owe farmers about Rs. 3,500 cr.

The Consortium of Indian Farmers’ Associations (CIFA) has urged the Centre to prevail upon the sugarmills across the country to clear forthwith the arrears amounting to Rs 3,500 crore which they owe to the sugarcane farmers. The CIFA has also called upon the government to fix the selling price of sugar at Rs 50 a kg .

Its Tamil Nadu unit general secretary R.Vriddhagiri told The Hindu that the sugar sector was the largest agro-based industry (nearly 50 lakh farmers depended on it for their livelihood). The sector also provided employment to lakhs of people.

However, the non clearance of arrears by the mills had impacted the stakeholders severely. The CIFA pointed out that the sugar prices were being kept artificially low to help the consumers, but it had been done at the cost of the small and marginal farmers.

Consumption by MNCs

It opined that multinational companies that were into the manufacture of soft drinks, biscuits, chocolates and ice cream consume 65 - 70 per cent of sugar produced in the country. These MNCs could easily afford to pay Rs 50 for a kg.

Therefore, to rejuvenate the sector the government ought to take certain policy decisions as follows: the government must allow export of 30 lakh tonnes of surplus sugar lying with the sugar mills; and it should also build a buffer stock of 2 million tonnes of sugar.

It also stated that for the power generated from bagasse the government ought to fix the purchase rate on par with that of solar power.

The CIFA also noted that the government must insist upon the oil marketing companies to implement the mandatory ethanol blending with petrol.

Referring to the Cauvery issue the CIFA stated that as recommended by the Cauvery Disputes Tribunal the government should facilitate the formation of the Cauvery Manangement Board and equip it with necessary power.

The CIFA office-bearers recently met Union Minister Pon.Radhakrishnan, Uma Bharati and Radha Mohan to drive home the point that the Karnataka’s proposal to build dams or barrages across the Cauvery was against the spirit of the Tribunal recommendations and hence, such an attempt should be scuttled.

Centre’s intervention sought for clearing arrears

Source: http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/sugarmills-owe-farmers-about-rs-3500-cr/article6674688.ece