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PM intervenes as Sugar farmers protest over pricing
Published on November 19, 2009 at 17:25
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NEW DELHI (Commodity Online): Sugar farmers from Uttar Pradesh poured to India’s capital city to demonstrate a protest against the government’s new sugarcane pricing and procurement policy.

The farmers demanded for a change in the sugar pricing and the procurement policy that the government is expected to amend from the current level. The government would have considered a hike in MSP for the sugar from Rs108/100 kg to Rs130/100 kilograms, which farmers allege doesn't reflect soaring refined sugar prices.

Holding sugarcane stems and shouting slogans, the farmers marched from Ramlila grounds to Jantar Mantar, a demonstration hotspot in the capital, as the Winter Session of Parliament began.

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Farmers threatened during the protest march that they would burn their produce unless mills double last season's price of Rs140 per 100 kilograms. Meanwhile, reports said that the sugar mills in the state agreed to pay farmers Rs180-Rs185 per100 kg, which somebut not all farmers have accepted.

Meanwhile, Prime Minister Manmohan Singh held an emergency meeting Thursday with the senior Cabinet Ministers to discuss the measures to be taken in order to pacify the protesting sugar cane farmers.

Finance Minister Pranab Mukherjee, Law Minister M Veerappa Moily, Agriculture Minister Sharad Pawar and Home Minister P Chidambaram attended the meeting at Parliament House.

However, the Ministers declined to divulge the decision taken at the meeting. Reports said, it would be tabled before the Cabinet in the evening session. Congress General Secretary Rahul Gandhi also met Manmohan Singh separately over sugarcane pricing and the Bundelkhand package issue.

The protest is organised by Ajit Singh’s Rashtriya Lok Dal, Mahendra Singh Tikait-led Bharatiya Kisan Union and Rashtriya Kisan Mazdoor Sangathan.

The Centre has announced a price of Rs 129.85 per quintal for sugarcane during the 2009-10 crushing season under the Fair and Remunerative Price system, which the protestors and the Opposition parties say is less.

Global sugar prices have risen by 70% since February, when India started to import the sweetener, while local sugar prices have risen 87% to Rs3, 500 per 100kg since January 1.
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