The AIKS Condemns the latest
decision of the Narendra Modi led Government to appease the Sugar lobby by
doling out further benefits to them without any concrete action by them to
clear the arrears due to the Cane Farmers which by the Government’s own
admission is 110 billion rupees ($1.84 billion). This is in continuation of the
policies of the Congress-led UPA Government which in December had approved
Rs.6,600 crore interest free loans for the sugar industry exclusively for
clearing sugarcane arrears. The present Government has extended this to allow
Corporate Sugar Mills to avail additional interest-free loans of up to Rs.4,400
crore from banks which will add up to Rs.11,000 crores altogether. However, in
reality the Sugar Mills have not yet cleared the dues of Cane Farmers. For
instance in Uttar Pradesh alone the arrears due to farmers are more than
Rs.4,400 crores. While the move was apparently intended to increase the cash
flow to the Corporate Mills to make payments of Cane arrears, the flow never
reached the Cane Farmers.
The Government has announced that it
will raise the import duty on Sugar to 40 percent from 15 percent and will consider
other incentives for Mill owners. While AIKS stands for increased import duties
in Sugarcane the Government has taken no steps to ensure that the benefit of
such an increase will accrue to the Cane Farmers. Although there is surplus in
the domestic market with 20-25 lakh tonnes the Sugar lobby will use the
opportunity to further increase Sugar prices for the consumers. In pursuance of
the Rangarajan Committee recommendation that Sugar import-export policy should
not be linked to domestic availability, this decision is silent about having
quantitative restrictions on Sugar imports. The Committee had argued for
promoting exports on the ground that even though India contributes 17 percent
to the global sugar output, its share in exports is only four per cent. It also
keeps the doors open for imports from outside as well as the possibility of
dumping of sugar by calling for an outright ban on quantitative
restrictions.
India had increased the subsidy for
raw sugar earlier this month on the pretext of boosting output and exports to
the tune of Rs 3,300 per tonne. This has been extended on sugar exports until
September. This has not benefited in terms of remunerative pricing for Farmers.
The long standing demand of Cane Farmers for getting a remunerative price of
Rs.3,500 per tonne however is not accepted. Notably the MSP announced for
2014-15 is only Rs.2,200 per tonne. While farmers bear the brunt of falling
global prices, the Corporate Mills earn huge profits when global prices rise
without transferring any benefit to Farmers. Companies also benefit hugely from
by-products like ethanol, press-mud etc while the Farmers are not compensated
for these products.
The move is only aimed at promoting
profits of Corporate Sugar Mills without addressing the problems of the Cane
Farmers. AIKS calls upon all units to protest against this move by the
Government and will hold a Consultative meeting of Farmers from Sugarcane
growing States on 23rd July to chalk out the future struggles against these
policies