NEW DELHI (Commodity Online): With new rules affecting sugar farmers where in sugar mills are required to pay the fair and remunerative price (FRP) fixed by the Centre and not share 50 per cent extra realisation at the end of the sugar year with farmers, the dilemma has begun for most parts of the country where crushing will soon begin.

In Karnataks this FRP is Rs 129.84 a quintal, 20.4 per cent more than the statutory minimum price (SMP) of Rs 107.76 a quintal fixed earlier this year while in UP mills are ready to pay Rs 180 per quintal for common variety of sugarcane, which includes Rs 15 as incentive over the State Advised Price (SAP) of Rs 165 per quintal. The farmers are not agreeing anything below Rs 280 per quintal.

Commodities like Sugar, more of a political commodity than real one, had many complex issues surrounding it. For instance the mills had to pay advance amount to farmers at the beginning of the season itself and also share their profits with the farmers at the end of the season.

Many believe, this is the real reason behind almost all the sugar mills running into losses for years together and still survives and thrives.

Farmers are not in favour of this new amendment and says they will vehemently protest this Sugarcane Control Order amendment. New Delhi will witness a large gathering of farmers to protest against this on November 19.

Sugar cane prices has been the bone of contention between the farmers, millers and the government since independence. With farmers forming a strong vote lobby, this has only been worsened. Now that even the millers have become strong even in political circles, the tussle has intensified between what you can get and what you need to get.

Consumers are already feeling the heat of the high sugar prices prevailing in the country. If no early settlement is reached, the crushing will be delayed further.

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