Withdraw Draft Sugar Control Order 2024 That Snatches Farmer, State Govt Rights: AISFF

The Union government has published the draft Sugar (Control) Order, 2024, citing technological advancements in the production process and other changes in the industry to replace the Sugar (Control) Order, 1966.

Criticising the move, the All-India Sugarcane Farmers Federation (AISFF) has accused the Union government of deleting even the few provisions that extended some benefits to sugarcane farmers. It has demanded withdrawal of the draft order to save the cane farmers from deepening crisis.  

The Union government, over the past few years, has increased the recovery rate to 10% from 8.5%, considered to adversely affect cane farmers. Section 5 A of the Sugar (Control) Order, 1966, which enables the farmers to receive an additional price arising out of the profits by the sugar mills, has already been removed. 

Farmer-Friendly Provisions Removed

The AISFF has criticised the Union government for eliminating the farmer-friendly provisions at a time when farmers in general struggle to meet the increasing input costs and challenges from unpredictable climate change.  

D Raveendran, AISFF president, told NewsClick, “Besides removing the provision to provide additional price to the farmers from the massive profits of the sugar mills, the Union government has also removed the provision enabling state governments to announce a state advisory price (SAP) that would protect the interests of the farmers”. 

Earlier this year, the Centre announced the fair and remunerative price (FRP) of Rs 340 per quintal for a recovery rate of 10.25% and Rs 315.10 per quintal for recovery below 9.5%. 

Views From Farmers not Sought

The department of food and public distribution, under the Ministry of Consumer Affairs, Food and Public Distribution, has invited comments and suggestions from various stakeholders on the draft order.

“The Union government has invited suggestions from sugar mills associations, CMDs, MDs and CEOs of sugar mills. Most unfortunately, farmers who produce sugarcane are not being considered for even registering their opinions about the draft order”, Raveendran said. 

Farmers Left at Mercy of Sugar Mills

A resolution passed by the AISFF has said that the new provision incorporated in the draft order, stipulating a condition that sugar mills should seek the permission/approval of the Union government for selling the sugar and byproducts, such as ethanol, would severely affect farmers and leave them at the mercy of sugar mills. 

The permission is essential for the sugar mills to sell the stock of sugar mortgaged with banks. Considering the time required to complete the systematic process and sale of sugar after obtaining the permission, the provision in the existing order to pay the farmers within 14 days of purchasing cane becomes defunct, it added.

“The new order will practically empower sugar mills to decide when they would pay farmers for the cane supplied. Already, sugarcane farmers are struggling with delayed payment despite the provision in the order.  This will seriously affect the interests of around 50 million sugarcane farmers of the country”, Raveendran said.

The AISFF has claimed that the proposed order would also snatch away the rights of state governments and lead to further concentration of powers with the Centre, thus affecting federal principles. It urged the Union government to invite representatives of sugarcane farmers and stay away from implementation of the order for now.