Sweet Relief To Farmers

To the relief of sugarcane farmers, the government has fixed the minimum support price of sugarcane at Rs. 635 per quintal for the current fiscal year 2023/24, an increase of Rs. 25 per quintal from a year ago. This critical measure aims to insulate the farmers in case their produce fails to get the fair price or their investment is at stake. From mouth-savouring sweets to mark the festivals or special occasions to daily cups of beloved tea, sugar is one the main ingredients in our dishes. However, the sorry state of affairs sugarcane farmers usually find themselves in deserves discussion.  

Year after year sugarcane farmers are forced to take to the streets, demanding fair and timely payment of their produce by sugar mills. They have to run from pillar to post to get sugar mills to release the money owed to them. Many of them resort to taking loans from loan sharks to purchase seeds and fertilisers. But when monsoon rains fail or come in inadequate quantity, the yield takes a negative turn. That renders them unable to earn enough to repay their loan, let alone pay for daily essentials. Making matters worse, the money, more often than not, is borrowed at exorbitant rate. Unable to pay off the loan on time has also meant they have been forced to sell their land to loan sharks at dirt cheap rate.

The minimum support price goes a long way to fetch the fair price for their produce. That will ensure they will continue getting that price even amid unfavourable circumstances. But more needs to be done to address their grievances. Failing to do that can have dire consequences. A few months ago, when the country was bracing for the season of the biggest festivals, the people were shocked to learn sugar was nowhere to be found in local market or even in supermarkets. If or when available, people had to pay ridiculously exorbitant price. The scarcity was attributed to the shortage of sugarcane to be crushed in the sugar mills. The problem still persists. 

When farmers suffer, consumers also suffer. Their long-standing problems have forced them to switch to alternative crops or to stop growing sugarcane altogether – the reasons contributing to the shortfall. In a worrying trend, sugarcane production has been in decline. In the fiscal year 2019-20, the country produced 3.40 million tonnes of sugarcane, which fell to 3.18 million tonnes in 2020-21. That further dropped to 3.15 million tonnes in 2021-22. To turn the table, farmers must be incentivised with more subsidies and other support. 

If measures are not rolled out soon, things are sure to get bitter in the coming months. India, the world's No. 2 sugar producer has restricted the export of sugar since October in light of the falling production, and experts say it has to begin importing sugar by 2025. This means we will no longer be able to turn to India to make up the shortfall. The farmers are saying the revised minimum support price is still not enough, demanding it should be at least Rs. 750. Not only sugarcane, but the entire agriculture sector suffers from neglect. As rising food price continues to have a negative impact in our budget, we cannot afford to sit idle and do nothing.