Parties differ over pricing issues

Parties differ over pricing issues
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First Published: Wed, Nov 25 2009. 10 02 PM IST
Updated: Wed, Nov 25 2009. 10 02 PM IST
New Delhi: The government could not reach a consensus over the ordinance issued to replace the statutory minimum price with a fair remunerative price as members of Parliament (MPs) belonging to southern states differed with their counterparts in northern parts of the country at an all party meeting convened by Pawar on Wednesday.
“I would convene a meeting of MPs of southern states, who have raised objections to the demand for restoration of section 5A of the Sugar Control Act,” Pawar told reporters after the meeting. Section 5A deals with sharing of 50% of profit earned over and above the levy price on free sale quota by millers with farmers.
In the meeting, some leaders raised the issue of restoration of Section 5A which was repealed in a notification following the ordinance issued recently. The ordinance announced a fair and remunerative price of Rs129.85 per quital to cane growers.
Rashtriya Lok Dal (RLD) leader Ajit Singh said that the government would have to pay Rs14,000 crore to the millers, due on account of levy price, if section 5A is restored. An executive in leading north India based sugar company, who did not wish to be identified said: “With the announcement of fair and remunerative price sugarcane farmers are getting guaranteed profit and risk cover, so there is no need for keeping section 5A.” He also said in South since sugar industry is basically a co-operative some millers want 5A because it is based on profit sharing.
“If they show no profit they share nothing with farmers. So they have a vested interest,” said the same executive.
“We have expressed our view in favour of the Bill, with or without the 5A clause, However, the minister (Sharad Pawar) has told us that he will come back to us after consulting the southern parties,” said Sushma Swaraj, deputy leader of BJP in Rajya Sabha.
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First Published: Wed, Nov 25 2009. 10 02 PM IST