Indian government to amend rules on sugarcane pricing

Bowing to protests by farmers demanding higher prices for their produce, the centre today said it would amend rules regarding the pricing of sugarcane.

The government will repeal clause 3(B) of the Sugarcane Control Order, 1966, railway minister Mamata Banerjee said after an all-party meeting to discuss the issue of sugarcane pricing.

As per Clause 3(B) of the Sugarcane Control Order, state governments have to bear the difference between the fair and remunerative price (FRP) and the State Advised Price (SAP) of sugarcane.

She said the onus of paying the difference between FRP and SAP would now be shifted to the sugar mills, as they are the ultimate beneficieries.

Mamta's statement comes close on the heels of prime minister Manmohan Singh's assurance that he would amend the sugarcane-pricing ordinance in farmers' interest.

The sugarcane-pricing bill will be introduced in Parliament on Monday.