Govt to soon end impasse over sugarcane FRP

NEW DELHI: The Center today said the impasse over farmers in Uttar Pradesh not selling sugarcane to millers at the new price set by it, which is lower than the price paid to them last year, would be sorted out soon.

"We will soon find out a mechanism to resolve the issue," Union Minister of State for Food K V Thomas said when asked about the delay in sugarcane crushing in the state following farmers' rejection to sell at the Fair and Remunerative Price (FRP).

Farmers in UP have rejected the centre's FRP system of payment saying the price fixed by the Centre is less than what the millers paid last year (Rs 140 a quintal).

Under FRB the millers have to pay the difference if the states fix higher sugarcane price than the one decided by the centre.

He said the Centre is aware of the whole issue and would decide how best a solution can be found keeping the interests of both the consumers and the farmers. Thomas was speaking on the sidelines of the India Economic Summit, organised by industry chamber CII and the World Economic Forum.

"We are thinking about how to pay good price to farmers," he said.

Asked whether the current FRP of Rs 129.84 a quintal could be increased, he said the mechanism would take care of every aspects, including the consumers get sugar at a reasonable price.

"FRP cannot be a fair price for the entire country because the sugar recovery and yield levels in UP is lower compared with Maharasthra and southern states," Kisan Mazdoor Sangathan Convenor V M Singh told reporters here today.