Centre Forms Panel to Review Sugar Prices and Farmer Payments
A new committee led by Prof. Ramesh Chand will examine sugarcane farmer payments and sugar minimum selling prices to address rising production costs.
In a significant move to address the growing financial concerns of both cultivators and manufacturers, the Central Government has officially constituted a high-level committee to review sugar prices and farmer payments. The decision comes as a response to rising production costs and the increasing financial strain on sugar mills across the country.
Focus on Sugarcane Farmer Returns
The newly formed committee is headed by Professor Ramesh Chand, a former member of NITI Aayog. The primary objective of this panel is to examine the growing demands for higher remunerative returns for sugarcane farmers. As cultivation costs continue to climb, the committee will analyze whether current payment structures adequately compensate farmers for their efforts.
The Ministry of Consumer Affairs, Food and Public Distribution has clarified that the review will take into account several critical factors, including:
- Cultivation Costs: Assessing the actual expenses incurred by farmers during the growing season.
- Minimum Selling Price (MSP): Investigating a revision of the ex-mill MSP of sugar, which has remained stagnant at Rs 31 per kg since February 2019.
- Financial Viability: Balancing the need for higher farmer payments with the economic survival and market realisations of sugar mills.
Addressing Transparency in Sugar Recovery
Beyond mere pricing, the committee is tasked with investigating the technical and operational processes that impact farmer earnings. A key area of focus will be the sugar recovery testing and reporting systems. Ensuring transparent verification of sugar recovery is vital, as the amount of sugar extracted from a batch of sugarcane directly dictates the payments made to the farmers.
Furthermore, the panel will scrutinize the weighing practices currently employed at sugar mills. Specifically, they will investigate the deductions made from the weight of mechanically harvested sugarcane to determine if these cuts accurately reflect actual losses or if they are unfairly impacting the final payments due to farmers.
Stakeholder Consultation and Next Steps
The committee is not working in isolation. To ensure a comprehensive report, the panel will consult a wide array of stakeholders, including:
- Representatives of sugarcane farmers
- Sugar mill associations
- State governments
- Industry experts and relevant organisations
The panel will consist of senior officials from the Ministries of Agriculture, Food Distribution, and Consumer Affairs. Once the deliberations are complete, the committee is expected to submit its findings and specific recommendations to the government as early as possible for further consideration and action.