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The government offer came at a meeting of all political parties to resolve the issue over which Parliament was stalled by the Opposition parties for two days as farmers converged on the capital yesterday protesting against the Ordinance.
The State Advised Price (SAP) will be restored and the difference in payments to farmers over the Fair and Remunerative Price (FRP) will have to be paid by the sugarmills instead of the government under an amended provision in the controversial Ordinance, political leaders said after the meeting chaired by Finance Minister Pranab Mukherjee.
The controversial ordinance amending the Sugarcane (Control) Order, issued by the government recently, had put the burden on the difference in payment on the states which was objected to by the Opposition parties and ruling UPA constituent DMK.
A bill to replace the Ordinance that will be brought in Lok Sabha on Monday will contain the revised provision that will enable shifting the burden from the state governments to the millowners.
Deputy Leader of BJP in Lok Sabha Sushma Swaraj and RLD leader Ajit Singh, who had spearheaded the farmers stir, welcomed the government decision.
The controversial Ordinance had replaced the SAP with FRP and the Government fixed the purchase price at Rs 129.84 a quintal for the current season.
Farmers in Uttar Pradesh are agitating demanding a rate of Rs 280 a quintal. Mills in UP have agreed to pay Rs 180-185 a quintal.
A statement issued by Parliamentary Affairs Minister P K Bansal said the Ordinance clause relating to the difference between SAP and FRP has given rise to certain misgivings.
"It is proposed to delete the clause altogether. Consequently, if the state announces a SAP, it will be the responsibility of the sugar mills to pay the SAP to the farmers," the statement said.
The decision has been conveyed to the leaders of the opposition parties at the meeting convened by Mukherjee, it said.
T R Baalu, leader of the DMK Parliamentary Party, which had opposed the Ordinance, said the Government decision was a vindication of the party's stand.
Bansal said the UPA wishes to reaffirm that it has always been guided by the principle that the interests of the farmers are paramount.
He said that the object of the Ordinance was to ensure that the farmers got a fair and just price for their sugarcane. "However, in view of certain judgements of the Supreme Court it was necessary to determine the price of levy sugar and to validate the actions taken by the Government in the past."
Hence, these provisions were included in the Ordinance, but they have created misgivings, the statement said.
Following the uproar in Parliament on Thursday, the Government convened a breakfast meeting of leaders of all political parties on Monday to discuss the sugarcane and other issues. But, sensing the urgency of the issue, Government convened a meeting at short notice today itself to sort out the matter.
The Monday meeting will, however, be held to discuss other issues.
Earlier on Thursday, Rahul Gandhi met Prime Minister Manmohan Singh against the backdrop of the controversy over the issue at which Singh assured him that if need be Government would amend the policy if it was against the interests of the farmers.
After the meeting with leaders of the political parties, Mukherjee held discussions with Agriculture Minister Sharad Pawar and Law and Justice Minister M Veerappa Moily over the changes in the ordinance.
Swaraj also thanked the Government for working out a solution in 24 hours but felt that no single party or individual could be given credit as it goes to the farmers.
"This is a victory of the farmers' rights and strengthens the democratic process", she said.
Ajit Singh said "we are happy that the Government finally listened to farmers' demands. It will certainly undo the damage caused by the Ordinance".
He said the farmers' agitation against the Ordinance is over and they would ensure that they get fair price for their produce.
Government agreed for the changes in the Ordinance in the wake of the opposition parties making it clear that they do not want it to shell out Rs 14,000 crore liability due to the sugar mills, but wanted it to ensure the interests of farmers.
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Why did the government pay 2.5 times the price to acquire sugar in the international commodity futures market yesterday while stating that due to domestic factors India will now become a net importer where it has always been a net exporter? This is a total sellout to Australia for NSG approval and fuel supplies. As simple as that!
Whatever is merit, we do not no in full about politics and money in sugar business , it is glad to see active opposition and that to on a farmer issue with no new election near....This is a healthy sign, BJP should get its act together in UP.
As the matter was aready decided by hon'ble Supreme Court Of India, GOI should have not intervened in the matter Moreove, it should have found ways and means to fix levy sugar prices by taking into consideration the prices of sugarcae paid by the mills to the farmers.
Though Sugarcane farmers, Government and Opposition has won but now Mills will cry foul and perhaps would announce closure. Nevertheless, Public will continue to pay increased sugar price and in return would get bitter taste. Jai Ho.
Separate Bombay from Maharashtra to stop goondaism of Marathis and secure lives of Hindi speaking people from Marathi unsocial elements.
This shows that govt acted in haste with out thinking the consequences that the farmers would face. We need a thinking govt and not a dumb govt. As we all know this govt never thinks and always acts against the interests of aam aadmi.
This simply shows that the UPA govt has simply passed the buck on to the state and the mill owners, instead of being clear abt their own Fair & Remunerative Prices.