Pawar asks sugar mills to share rising profits with farmers

Last Updated: Tuesday, December 22, 2009 - 22:07

New Delhi: With skyrocketing sugar prices in the retail market, Food and Agriculture Minister Sharad Pawar on Tuesday asked the sugar industry to pass on the higher realisation from the sweetener to the cane farmers.
The minister`s appeal comes on the heels of his assurance to Parliament that the Government may revisit the abolition of clause 5A in the Sugarcane Control Order which demands millers/industry sharing profits with the cane farmers.

"Considering the current prevailing high sugar price, there is adequate justification and need that sugar factories should pay a reasonably good price to cane farmers, which should be about 70 per cent of the price of sugar received by the mills," Pawar said addressing the AGM of the India Sugar Mills Association (ISMA) here today.

The retail price of sugar has doubled in last one year at Rs 40 a kg.

Pawar ruled out a long standing demand of the mills for de-control the sector, saying it is not the right time to do so. It is difficult to accept the demand as people are protesting against high sugar price even at venue of a cricket match, he said, while narrating a recent incident a Chandigarh.

Pointing out that there is an enormous scope of improvement in the sugarcane productivity Pawar said, "it is also the responsibility of the sugar mills to help farmers in achieving the same." Brazil has a productivity of 75 tonne per hectare while India has 68.9 tonne a hectare.

PTI



First Published: Tuesday, December 22, 2009 - 22:07

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