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Farmers and farm leaders have slammed the recent increase of Rs 10 per quintal — from Rs 305 to Rs 315 — in the fair remunerative price (FRP) of sugarcane by the Central government and have called for a fairer pricing system.
They argue that the disparity between the FRP and State Advised Price (SAP) system has resulted in significant losses for Punjab farmers, as mills often delay payments based on SAP rates. The farmers demand that the SAP and FRP be set at the same price.
In Punjab, the SAP is Rs 380 per quintal. Similalary, Haryana and Uttar Pradesh governments too have their own SAP which is more than FRP. This difference is causing harassment to the farmers.
Jagmohan Singh, general secretary of BKU-Ekta (Dakaunda), criticised the nominal increase in the price of sugarcane for the entire year’s crop, stating that it mocks farmers across the country. He emphasised that sugarcane is a year-long crop, and farmers face numerous challenges in terms of its value, which directly affects their livelihoods and economic well-being.
To improve this situation and ensure fair compensation for farmers, Jagmohan called for implementation of the Swaminathan Commission’s recommendation to fix the price of sugarcane at Rs 460 per quintal. He suggested that the Central government take responsibility for the payment of sugarcane instead of relying on mills that often fail to pay farmers on time.
“Also, the Centre should open its own research centres to provide best inputs, seeds to the farmers and to provide them a fair price,” he said. “In Punjab, sugarcane farmers have to resort to protests every year to receive their dues from mills and the government.” He emphasised that the Central government assuming payment responsibility would alleviate the burden faced by sugarcane producers.
Kirpal Singh Musapur, a progressive sugarcane grower and advisor member of the Kisan Committee of Punjab Agriculture University, Ludhiana, highlighted the financial challenges faced by farmers due to the difference between the state-fixed SAP of Rs 380 per quintal and the FRP. The state government bears this difference of Rs 65 per quintal, but due to a lack of funds, farmers often do not receive the full SAP amount on time, and pending dues can take several years to be paid.
Satnam Singh Sahni, general secretary of BKU Doaba, a group that has been advocating for cane growers in the state, expressed concern over the burden placed on state governments due to the lower FRP set by the Central government. Each state calculates its own SAP based on the production cost of sugarcane, and the difference between SAP and FRP becomes the responsibility of the state government.
Sahni stressed the need for SAP and FRP to be decided at the same rate. He added that sugarcane is the only crop that can reduce the area under water-intensive paddy cultivation, and farmers are interested in growing sugarcane. However, due to payment issues, the area under sugarcane cultivation has remained below one lakh hectares for several years while paddy cultivation has expanded to 31 lakh hectares in the state, according to Manjit Singh Rai, the president of BKU Doaba.
In Punjab, annually 87,000 hectare to 97,000 hectare area is being covered under the cane crop which is a little over 2% of the total agricultural area of the state and the production remains between 835 and 843 quintals per hectare.
An expert from Punjab Agriculture Department said that until the Centre took the payment of the cane in its hands like wheat and paddy, the cane growers would never get fair price. They would always be dependant on the sugar mills for their payments which will never happen on time.
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