Educate ecosystem of sugarcane farmers on benefits of new farm laws: Piyush Goyal

Pune: Union food minister Piyush Goyal has asked the sugar industry for a partnership with the government to educate the 5.25 crore people associated with the industry ecosystem about the new farm laws, about how they open new opportunities for farmers.

Goyal refused to increase the minimum selling price (MSP) of sugar, saying it would institutionalise sugar price increase by linking it with any rise in cane prices. The fair and remunerative price (FRP) of sugarcane cannot be reduced and the industry has to accept it as a reality, he said.

Goyal asked the industry to become competitive, not to produce surplus sugar and come to the government asking for support when the surplus sugar depressed prices.

Goyal was speaking at the 86th annual general meeting of the Indian Sugar Mills Association (ISMA).

After having approved payment of Rs 5,300 crore of pending subsidy to sugar mills for previous years, Goyal reminded them to clear the cane dues of farmers. The minister said the chief minister of Uttar Pradesh,the largest sugar cane producer, had expressed his unhappiness about the amount sugar mills owe the farmers.

He asked the mills to reduce their dependence on government subsidy. “If you are all the time going to be dependent on government subsidy, then we rather give that subsidy to the farmer to look at alternate produce to bring down the sugar production, keeping an adequate stock for some exigency,” he said.

While speaking about the demand of the industry to implement the revenue sharing formula where farmers are paid 70% of the revenue earned by the mills from sugar, the minister advised the mills to be practical.

“We cannot reduce FRP. It is now an institutionalised mechanism going on for several years. We have to start from the presumption that it is the reality and from there look at ways and means. Why are we promoting ethanol in such a big way? We recognise that we are not going to be able to reduce FRP,” he said.

Goyal said the revenue sharing formula could be practical in a totally market driven economy where farmers have farms of a few thousand hectares.

“Our farmers are literally hands to mouth and out on the street asking for even more products to be brought under MSP. They want the comfort of very restrictive products and restrictive options. Here we are trying to give them more options, give them more opportunities. But unfortunately, even that is causing stress. I would urge you, you have a large command area. Most of them (farmers) have the comfort of the FRP. Try to interact with farmers and educate them how these new Bills are going to open opportunities for them,” the minister said. “They are not only sugarcane farmers. Many of them have multiple crops. It can't be just the responsibility of the government to reform the country, to transform the country. It will have to be a partnership of industry and us. The ecosystem of the sugarcane industry is huge with farmers, their dependents and the people working in the sugar mills are about 5.25 crore. You can educate them how these new laws can help them grow, diversify, increase their income, look for more sustainable income, improve their cropping pattern.”

The industry has been demanding increase in the MSP of sugar, commensurate with every increase in the FRP of cane. However, Goyal said he did not like the idea of institutionalising increase in the consumer price of sugar.

“We have to look at alternate ways. Why should ethanol blending be only 10%? It can be 20% or 30%. I suggest that you work closely with the transport sector and see how we can evolve alternate methods for value addition to your industry,” said Goyal.

The minister asked the ISMA to run campaigns on the farm laws. “I would look at a partnership between the ISMA and the government to educate the people of India, run campaigns to show how these laws will help our farmers increase incomes and help in a way your sector also to become more market driven.”

Goyal asked the sugar industry to work in such a way that the role of the government gradually goes away.

“It is now time the industry looks at the overall working, the value addition and the potential for other products that it can produce and work in partnership with the government to find alternate and better business models which can help you in your quest for growth and prosperity,” he said.