Uttar Pradesh bans import of raw sugar

The Uttar Pradesh government Wednesday banned import of raw sugar into the state as well as its movement in the wake of protests by farmers against the government fixing "non-lucrative" prices for sugarcane.

"The government has decided to ban all import of raw sugar into the state as well as its movement inside the state," Cabinet Secretary Shashank Shekhar Singh told reporters here.

The measure has been taken to bar sugarcane growers elsewhere from taking advantage of higher price the state was offerig the cane growers than the fair remunerative price the central government has fixed.

Sugarcane growers in the state are spearheading widespread protests against a central government ordinance fixing sugarcane prices, which according to the famers, discourages the state from announcing higher prices.

According to the Oct 23 ordinance, if the state-advised price (SAP) is higher than the fair remunerative price (FRP) determined by the central government, the state governments will have to pay the excess amount.

Openly defying the central government ordinance, the state government has decided to stick to the higher state-advised price (SAP) it had announced.

Announcing a Rs.25 a quintal hike over last year's price, the state government last week declared Rs.165 and Rs.170 as the SAP for the two main varieties of sugarcane produced in the state.

That was pretty much higher than the fair remunerative price (FRP) of Rs.123 and Rs.129, determined by the central government.

"Keeping in mind the interest of 40 lakh sugarcane farmers of the state, the chief minister (Mayawati) has issued directives to ensure that payment to the farmer was made at the SAP fixed by the state only," Singh said.

"Fixation of the SAP was the legitimate right of the state, duly ratified by the country's apex court," he added.

Last updated on Nov 4^th, 2009 at 21:54 pm IST--IANS