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Maharashtra: Farmers suspend protest, want funds to be arranged in 2 weeks

The truce between the farmers and millers might have resolved the crisis, but it may have also pushed cane payment further away.

Cane arrears up to Rs 11,000 cr, set to mount before polls Representatives of sugar mills and protesting farmers had extensive day-long meetings on Monday, and a temporary truce was worked out.  (Praveen Khanna) 
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After four days of protests, farmers in western Maharashtra called off their agitation on Monday while giving sugar millers and the government two weeks to arrange funds for making full payment of dues to sugarcane growers in the area.

Representatives of sugar mills and protesting farmers had extensive day-long meetings on Monday, and a temporary truce was worked out. Millers decided to seek government help in raising money to pay the farmers, while the farmers agreed to call off their protest and allow the mills to resume their crushing operations. The mills resumed their operations in the evening.

Anil S Madnik, a senior leader of the Swabhimani Shetkari Sanghatana, which has been spearheading the agitation, said both sides had agreed that farmers would be given full payment according to the Fair and Remunerative Price (FRP) and not partial payment as the mills had been doing. “We have asked the mills to impress upon the government the seriousness of the situation. We have given them time till January 28 to raise funds to pay full FRP,” Madnik said.
On January 28, Sanghatana leader and MP Raju Shetti will lead a protest rally to the Sugar Commissioner’s office in Pune.

Explained: Why are farmers in the sugar bowl of Western Maharashtra angry?

The truce between the farmers and millers might have resolved the crisis, but it may have also pushed cane payment further away. As millers have agreed not to pay FRP in instalments, they will have to make agreement for funds to make full payment, which would not be easy. The truce will mean that farmers’ payment would be delayed by more than three months, which has never happened in the state.

Millers who attended the meeting with farmers said they explained to the protesters why they were unable to make the full payments. “We have already sent repeated proposals to the government to help us pay FRP. It was proposed that the government could provide Rs 500 per tonne as bridge payment to the farmers while we will pay the remaining amount. Also, we have asked for the minimum selling price of sugar to be raised to Rs 3,400 per quintal from the present Rs 2,900 per quintal,” said a miller.

Most millers have pinned their hope on an imminent rise in the minimum selling price of sugar which will help them raise more funds. It is estimated that the rise can be Rs 3,100-3,200 per quintal range.

Sanghtana’s Shetti said his organisation will continue to oppose the entry of BJP president Amit Shah in Kolhapur. Shah is slated to visit Kolhapur on January 24. “Just because we have decided to withdraw the agitation temporarily does not mean we have relaxed our stand of full payment of FRP,” he said.

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Shetti met Sugar Commissioner Shekar Gaikwad in Pune on Monday and demanded action against mills who have not made full payments to farmers. He also demanded that the mills be allowed to pay the remaining amount in the form of sugar but without GST. Gaikwad said he had instructed mills to pay the full FRP for small and medium landholders. “The other proposal of payment of bridge amount in the form of sugar has also been accepted in principle by most mills. We will be looking into the modalities of it,” he said.

The district administration has issued prohibitory orders in Kolhapur till January 29.

The truce ended the four-day crisis in western Maharashtra. Farmers had taken to roads to protest against the partial payment of FRP by mills, burning tyres, blocking highways and locking down sugar mills. They were protesting against the decision of majority of the sugar mills to pay farmers at the rate of Rs 2,300 per tonne of sugarcane instead of the average of Rs 2,800 per tonne of FRP in the region. Mills had cited flat sugar rates and their liquidity crunch for their inability to make full payments.

My Express

Partha Sarathi Biwas is an Assistant Editor with The Indian Express with 10+ years of experience in reporting on Agriculture, Commodities and Developmental issues. He has been with The Indian Express since 2011 and earlier worked with DNA. Partha's report about Farmers Producer Companies (FPC) as well long pieces on various agricultural issues have been cited by various academic publications including those published by the Government of India. He is often invited as a visiting faculty to various schools of journalism to talk about development journalism and rural reporting. In his spare time Partha trains for marathons and has participated in multiple marathons and half marathons. ... Read More

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