Does Privatisation Benefit Farmers? Sugar Mills Already Owe Thousands Of Crores To Farmers
Following Prime Minister Modi's appeal, union ministers are roaming around villages and informing farmers about the new farm Laws. While the government says that this will benefit the farmers; they say the government is privatising the agricultural sector.
However, data doesn’t back the Govt’s claim that privatisation is beneficial for the farmers.
The Central Government itself told in Parliament that the money of farmers is pending with private companies, which is not being paid. During the monsoon session, the government has stated that since 2016, the Government and private companies have outstanding dues of Rs 15,683 crore of sugarcane farmers. Of these, 14 mills of Bajaj Hindustan alone owe about Rs 3,000 crore to the farmers, which the company has not paid. Uttar Pradesh, the BJP-ruled state, owes the most to the farmers, according to the information provided by the state government in the Assembly. During the sugar season 2019-20, sugar companies paid only 76% of the total purchase from farmers. Among these, at the top, Modi Sugar Mills has paid only 37% of the total sugarcane purchase from farmers during this period. According to the government data, sugarcane farmers have more than Rs 7,702 crore pending on private companies. At the same time, there is an outstanding amount of Rs 610 crore on corporate sectors and Rs 130 crore of farmers on the government itself. Apart from farmers’ bodies, the Opposition is also out on the streets in protest against the controversial agricultural laws. The Opposition alleges that the government has violated constitutional rules, from enacting to the passage by the Parliament. Whereas the farmers' organisations argue that with the enactment of this law, private companies will act arbitrarily which will cause heavy losses to the farmers.
The Central Government itself told in Parliament that the money of farmers is pending with private companies, which is not being paid. During the monsoon session, the government has stated that since 2016, the Government and private companies have outstanding dues of Rs 15,683 crore of sugarcane farmers. Of these, 14 mills of Bajaj Hindustan alone owe about Rs 3,000 crore to the farmers, which the company has not paid. Uttar Pradesh, the BJP-ruled state, owes the most to the farmers, according to the information provided by the state government in the Assembly. During the sugar season 2019-20, sugar companies paid only 76% of the total purchase from farmers. Among these, at the top, Modi Sugar Mills has paid only 37% of the total sugarcane purchase from farmers during this period. According to the government data, sugarcane farmers have more than Rs 7,702 crore pending on private companies. At the same time, there is an outstanding amount of Rs 610 crore on corporate sectors and Rs 130 crore of farmers on the government itself. Apart from farmers’ bodies, the Opposition is also out on the streets in protest against the controversial agricultural laws. The Opposition alleges that the government has violated constitutional rules, from enacting to the passage by the Parliament. Whereas the farmers' organisations argue that with the enactment of this law, private companies will act arbitrarily which will cause heavy losses to the farmers.
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