Mah congress demands compensation for farmers

Mumbai, Jul 12 (UNI) In an attempt to provide succour to the sugarcane industry facing problem of excessive production, Maharashtra Congress has demanded compensation of Rs 60,000 per hectare for farmers whose produce has remained uncrushed.

The demand was made by a three-member committee set up by the state unit of the party which looked into the crisis of sugarcane farmers and co-operative sugar units in the state in wake of the unprecedented sugarcane production, which is in excess of 10 million MT compare to the previous year's produce.

Another 10 per cent rise is expected but next year and sugarcane growers will be in a devastating situation if necessary measures are not taken by the centre and state governments. No sugar factory is in a position to pay the statutory minimum price of sugarcane to farmers which is legally binding, its report said.

The committee members--former MLC Kanhaiyalal Gidwani, former MP Dada Patil Shelke and former director of the Food Corporation of India (FCI) Manikrao Ambegaonkar, accompanied by MPCC president Prabha Rau called on Chief Minister Vilasrao Deshmukh and submitted the report.

Asked whether the Chief Minister had accepted the demand, Ms Rau said the government's response was positive and ''we are confident the Chief Minister would try his best. Since the Monsoon session of the Legislature begins on Monday, the government cannot take any policy decision outright''.

Ms Rau said the government has already announced an assistance of Rs 25,000 per hectare, for the uncrushed cane during the budget session of the Legislature earlier this year.

Reviving of sick units is vital and the government must look at restarting the 25 sick units either by leasing them or ensuring their auction, paving way for utilisation of the same for 2007-08 ensuring that there is no sugarcane left to be crushed. Focus should primarily be on restarting sick units in Marathwada as this was the area with maximum uncut cane.

The other demand was that the state government should immediately set up an action plan and assistance should be given to the sugar mills that already have the infrastructure for power generation, Rau said.

UNI