The Hindu : Will hold talks on U.P. cane growers' problems: Rajnath

Online edition of India's National Newspaper
Wednesday, May 28, 2003

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National

Will hold talks on U.P. cane growers' problems: Rajnath

By Our Special Correspondent

Photo: V.V. Krishnan

Rajnath Singh who assumed charge as the new Minister for Agriculture, in his office in New Delhi on Tuesday.

NEW DELHI May 27. The new Union Agriculture Minister, Rajnath Singh, said here today that he would soon hold discussions with the Union Finance Minister, Jaswant Singh, and the Food Minister, Sharad Yadav, and try and find a solution to the problems being faced by sugarcane growers in Uttar Pradesh.

Speaking to reporters after assuming charge, he said, "I have studied the issue in depth and have some possible solutions in mind which I will discuss with them".

Describing the plight of the cane growers as "sad, unfortunate and challenging", Mr. Singh rejected suggestions that the Centre should direct the Uttar Pradesh Government to ensure that sugar mills paid the farmers on the basis of State Advisory Price (SAP).

The Centre could not direct the State since it had its limitation under the federal system. But, the Chief Minister, Mayawati, should have come to the farmers' rescue.

She should have herself directed the mills to pay on SAP basis. "When I was the Chief Minister, I had ensured a payment at Rs. 95 and Rs. 100 per quintal.''

He also dismissed the mills' arguments that they were not in a position to pay on SAP basis since sugar prices had fallen. "The prices are remunerative enough to pay at SAP rates".

Asked about his priorities, Mr. Singh said he wanted to make farming a remunerative enterprise, and for this he would focus on strengthening of cooperative sector and improving the marketing system.

"Farmers are suffering from an inferiority complex due to low income and preferred that their sons even became peons rather than carry on the agri-legacy. This needed to be changed.''

He emphasised the need for developed countries to reduce their agricultural subsidies so that goods from countries such as India become more competitive in the world market.

The quality of many commodities produced by developing countries was much better than that of the developed ones but they could not compete on the price front due to the trade distorting subsidies of the latter.

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