Govt further hikes fair price for sugarcane to Rs220 per quintal

The central government esterday announced a further hike in the fair and remunerative price (RFP) for sugarcane to Rs220 per quintal for the 2014-15 sugarcane season, from Rs210 for the 2013-14 season, despite mounting arrears that sugar mills owe cane farmers.

State governments are free to top up the FRP and decide the price that sugar mills must pay to sugarcane farmers in their state.

The FRP for sugar has almost tripled in the last ten years, from Rs74.50 per quintal for 2004-05 season.

The central government had earlier, announced a significant increase in the minimum support prices (MSP) for rabi crops for 2014-15 marketing season.

Wheat MSP for the current crop is Rs1,400 per quintal against Rs640 per quintal ten years back. During the period, MSP for rice has gone up to Rs1310 per quintal from Rs560 per quintal.

The MSP for tur (arhar, pigeon pea), a major pulse crop, now stands at Rs4,300 per quintal against Rs1,390 per quintal a decade ago.

Similar increases have occurred in the MSP for oilseeds - MSP for the current crop mustard stands at Rs3,050 against Rs1,700 per quintal in 2004-05; the MSP for groundnut stands at Rs4,000 per quintal, which has more than doubled from Rs1,500 per quintal in 2004-05.

Meanwhile, the Bharatiya Kisan Sangh (BKS), a farmers' body, has demanded fixation of minimum support price (MSP) for castor at Rs70,000 per tonne.

BKS leaders have announced to take out Kisan Jagriti Abhiyan during 8 to 15 February in the castor growing districts of Banaskantha, Sabarkantha, Mehsana, Kutch, Ahmedabad, Vadodra and Patan in Gujarat.

According to farmers the prices have tumbled to lower levels which are not remunerative for the growers.

''MNCs and their Indian agents to fulfil their export obligation are forcing Indian castor farmers to sell their crop at non-remunerative prices of Rs41,000 to Rs44,000 per tonne (whereas input cost stands at Rs60,000 to Rs70,000 per tonne),'' BKS stated in a release.

BKS has appealed to the central government to announce minimum support price of Rs70,000 per tonne for castor seed and minimum export value of $2,000 per tonne for castor oil.

Further, BKS has urged the commodity exchanges and the commodities market regulator Forward Market Commission (FMC) to impose additional cash margin on the sell side to safeguard farmers from falling prices of castor seed.