Sweetness is good but too much of it makes one feel nauseatic and this is exactly what the Centre might be feeling while tackling the woes faced by sugarcane farmers and sugar mill owners of the country.
According to reports, the country has produced more sugar than it can consume, forcing prices to dip. With price of sugar nosediving, the mills are finding it hard to realise even the production cost.
The recent Cabinet decision to cap maximum selling price of sugar too has added bitterness to the problem. It was decided to cap the price at Rs 29 per kilogram, whereas, the present selling price is at Rs 26 per kilogram. However, sugar mill owners opine that the production cost hover between Rs 35 and Rs 36 per kilogram (in Uttar Pradesh). Thus, the capping of prices just added to the woes.
While the Modi government is boasting of pumping is Rs 7,000 crore to bailout farmers and mills from the problem, the fact is sugarcane farmers in India are owed Rs 22,000 crore, according to the government’s own admission.
Out of the Rs 7,000 crore, farmers have been allocated a meagre Rs 1,175 crore while the rest go to the sugar mill owners.
The problem started when sugar production in 2017-18 touched 31.6 million tonne while India’s average annual consumption is pegged at 25 million tonne. Experts believe the problem will continue even next year as domestic production of sugar will surpass domestic consumption in 2018-19 too.
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Farmers across the country, meanwhile, believe funds provided is less for them and more for the mills. Even if that is statistically correct, the meagre amount of Rs 7,000 crore will help none as the total amount to be paid to sugarcane farmers stand at Rs 22,000 crore.
A minor mathematical calculation lets the cat out of the bag. While the Centre is claiming the Rs 7,000 crore to be a bailout package, it is just a little more that 31% of the total due and if farmers are to be considered, then the earmarked amount accounts for only 5% of the total money they are to receive.
If there are sugarcane farmers on one side, there are farmers of MP, Punjab, Maharashtra and others who are demanding a minimum price for their produce. Not to forget the slew of setbacks the party has already faced in the form of Karnataka and by-poll elections.
Reports, that quote a waning rural support for the party, have also increased worries for the BJP. The marginalised section of society, that voted for Narendra Modi in 2014, have had their blinkers removed right from the days of demonetisation and are increasingly criticising the policies and schemes of the government. Only a major pro-people scheme can now come as a face saver for the party as 2019 is not too far.
Statistic courtesy: The Wire
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