December 15, 2015
Pratima Mandal speaks in Lok Sabha on The Sugar Cess (Amendment) Bill, 2015
Mr. Deputy Speaker, Sir, thank you for allowing me to speak on this important issue. I would like to express my concurrence with the substantive provisions of the Sugar Cess (Amendment) Bill, 2015 which is under consideration.
I would particularly like to comment on the fact that irrespective of the party in power, none has addressed the farmers’ problems. All of them have maintained a mysterious silence on agricultural and agrarian issues. Natural calamities are other major problems for farmers. Currently, around 320 Districts of the nation are suffering from severe drought.
Last year’s hailstorm and recent drought have crushed the backbone of Indian farmer. In case of natural calamities the Government has proposed not to provide compensation on losses of less than 50 per cent. Insurance schemes have also failed to protect farmers’ interest. Taking the example of Rajasthan alone, insurance companies have collected a big sum of Rs 1,800 crore in the last six years. The companies collecting Rs 300 crore annually as premium of insurance have paid only Rs 50 crore as compensation to the farmers claiming damages. For the year 2014-15, 6.47 lakh farmers from 65 different Districts of Uttar Pradesh insured their crops by paying Rs 2,133 crore, but now a small amount of Rs.1.65 crore has been granted as compensation for 7,581 farmers.
Sir, recently in Madhya Pradesh, Rs.25 to Rs.27 were given as compensation, which is a mockery of distressed farmers. In this regard I would like to know the Government’s view regarding Dr. Swaminathan’s recommendation of providing MSP plus 50 per cent beneficiary price to the farmers on agricultural products, which will not only boost the farming sector economically but also give wings to the lost hopes of agriculturalists.
The Central Government last month decided to extend a loan package of Rs 6,000 crore to sugar mills to help clear sugarcane arrears and offered to bear a 10 per cent interest subsidy on the loan for one year. But the package failed to enthuse the industry as it did not solve the basic problem of excessive stocks and lack of a linkage between the prices of sugarcane and its by-products including sugar.
With banks refusing to give working capital loans to many mills, bulk of arrears are all set to be paid in the next sugar season only. In this respect, I would like to mention here the Rangarajan Panel’s linkage formulae.
The panel had suggested that the mills will pay 70 per cent of the prices of sugarcane and other by-products and 75 per cent of the prices of only sugar to farmers for sugarcane purchases. I would like to know the Government’s views regarding the Rangarajan Panel’s linkage formulae. Last month, in a landmark move, the Union Cabinet Committee on Economic Affairs decided to pay a production-linked subsidy of Rs 4.50 per quintal directly into the bank accounts of sugarcane farmers for 2015-16 season.
In that case, initiative from the Government to open bank account of every sugarcane farmer should also be ensured. At the same time, assurance from the Government is also very vital because a hefty increase of Rs 200 per quintal in sugar cess might not lead to increase in retail prices.
I would like to suggest that creation of a buffer stock of sugar for loans should be made available for sugar development fund for ethanol production, modernization of mills and co-generation and exemption for producing ethanol directly from molasses. I would also like to add that import of sugar should be banned and duty should be hiked to 40 per cent immediately and also there should be incentives for export of white sugar.
I would like to take a minute here and suggest that it is desirable to have a packaging policy integrated with the export policy of India to ensure that all packaging of sugar is done using jute and other environment-friendly material. In fact, if I may add, we shall commit to reducing our ecological footprint by making sure to maximum extent possible that packaging of all goods exported from or imported into India is done using environment-friendly material.
Sir, I, on behalf of my party, extend my whole-hearted support to this Bill.
