Question : UNIFORM SUGARCANE PRICE POLICY



(a) whether the Government have yet to finalise uniform sugarcane price policy;

(b) whether farmers from Haryana receive higher minimum support price of sugarcane in comparision to frmers from Western U.P.;

(c) if so, the reasons therefor; and

(d) the remedial measures the Government propose to take in this regard?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION ( SHRI V. SREENIVASA PRASAD )

(a): The Central Government fixes the Statutory Minimum Price (SMP) of sugarcane for each season playable by the sugar factories to the sugarcane growers. The SMP, which is linked to a recovery level of 8.5%, is uniform. A premium, as fixed by the Central Government, is payable for every 0.1% point increase in the recovery above 8.5%.

(b),(c)&(d): The Central Government has notified the Statutory Minimum Price of sugarcane payable by sugar factories for 2001-2002 sugar season at a uniform level of Rs.62.50 per quintal linked to a basic recovery of 8.5%. The premium fixed is 73 paise for every 0.1% point increase in the recovery above that level. On this basis, the range of Statutory Minimum Price notified for sugar factories in Haryana is Rs.64.24 per quintal to Rs.75.92 per quintal while that for sugar factories in Uttar Pradesh, including West U.P., is from Rs.62.05 per quintal to Rs.81.76 per quintal. The variance in the SMP is due to variance in the recovery percentage.