Sugar millers uniting to get key provision dropped from draft order: Shetti
Farmers’ leader Raju Shetti criticized sugar millers for opposing a provision in the draft Sugar (Control) Order 2024 that includes byproducts like ethanol in mills’ revenue, impacting Fair and Remunerative Price (FRP) for farmers. Shetti argues this would ensure farmers receive a fairer share of profits from byproducts, while millers oppose the clause to protect their profits.
Kolhapur: Farmers’ leader Raju Shetti on Wednesday said sugar millers were uniting to get a key tiller-friendly provision removed from the draft Sugar (Control) Order 2024, which proposes to include byproducts like ethanol as part of the mills’ revenue to help farmers get more remuneration for their produce.At present, the Fair and Remunerative Price (FRP), the minimum price mandated for mills to pay to the cane farmers, is calculated based on the sugar recovery rate.
If the draft order is passed, the byproducts will also be factored in while deciding the FRP. The byproducts include ethanol, cane juice, syrup, bagasse, compressed bio-gas and bio-electricity.On Aug 22, the ministry of consumer affairs, food and public distribution had issued the draft Sugar (Control) Order 2024 with 15 key new provisions. Stakeholders can present their suggestions and objections to the draft order till Sept 23.A few days back, the National Federation of Cooperative Sugar Factories held a meeting with over 50 representatives from across the country to deliberate on the proposed changes. The foremost objection to the draft order, as told by federation president Harshvardhan Patil, was regarding the consideration of the average revenue realization from byproducts generated in the process of sugar production as a part of the sugar price regulation. Against the backdrop of the millers’ opposition to the draft order, Shetti had met state sugar commissioner Kunal Khemnar on Wednesday. “The sugar millers have decided to object to the clause related to the byproducts. The consideration of the revenue generated by the millers in fixing sugar prices will help the farmers get more remuneration. The millers make windfall profits from the byproducts but do not share it with the farmers. We will ensure that the clause remains in the final order introduced in Parliament,” Shetti said. Patil said the federation was compiling the suggestions from private and cooperative millers across the country. The report would be presented to the ministry on Sept 22, he said, adding that MPs cutting across party lines would be apprised of the clauses in the draft order and their likely impact on the sugar industry. “The millers, however, show debts and loan instalments in the balance sheet to deny farmers their rightful remuneration,” Shetti added.
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