Sugarcane pricing: UPA faces heat from ally DMK

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Sugarcane pricing: DMK may turn UPA's foe
Chennai, Nov 19: The ruling UPA is not just facing the heat from the Opposition parties over the new sugarcane pricing policy as its key ally in the south- DMK has also expressed its disagreement over the Centre's new policy.

“If there is a structured and regulated discussion on sugarcane issue, we will participate in it and vent our feelings because the Central government has not taken the state governments into confidence," DMK Parliamentary Party Leader T R Baalu is quoted as saying in a news agency report.

After the Lok Sabha was adjourned on Thursday, Nov 19, Mr Baalu and Telecom Minister A Raja reportedly met Finance Minister Pranab Mukherjee over the issue.

Mr Baalu informed that the concept of state bearing the difference between the Fair and Remunerative Price (FRP) and State Advisory Price (SAP) did not fit in well with DMK.

The fixed FRP would put the pressure on states if they choose to pay more than FRP to farmers.

Earlier, states used to announce State Advisory Price (SAP), over and above the Statutory Minimum Price (SMP) of the Centre and the differential was borne by the mills. But the new system would discourage the states to announce their SAPs as they have to bear the differential.

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