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The Beginning

Sugar proved bitter for Delhiites on 19th November morning when they  had a sour encounter with farmers from Uttar Pradesh protesting against the new sugarcane pricing policy announced by the central and state governments.

The central government had announced a price of Rs.129.85 per quintal for sugarcane during the 2009-10 crushing season under the Fair and Remunerative Price (FRP) system. In case a state government fixes State Advisory Price (SAP) higher than the FRP, it will have to pay the difference. Farmers were demanding Rs. 280 per quintal for their produce.

Later, however because of disruption caused in parliament, government withdrew the Ordinance and farmers called off the month long agitation after sugar mills promised them a higher price. But political debate is still going on the issue whether Rs.180-205 per quintal offered by the mills is enough or not.

Even after being in the trading of agricultural commodities, when we saw thousands of farmers storming the busy roads of Delhi with sugarcanes in hand we wondered what this is all about. And decided to understand the commodity. We will try to cover various aspects of sugar business right from its production to its trade in days to come.

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Click here to view Sugarcane Crop Cycle in India



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