With mass production across the country, the Niti Aayog has recommended that Sugarcane cultivation in the country must be decreased and replaced by other crops.
The NITI Aayog said that farmers should be handed a remuneration of Rs.6000 to replace sugarcane with other crops per hectare. This will decrease the area under sugarcane production by 3 lakh hectares. These recommendations come at a time when the government has passed regulations that allow for private players to enter into the agriculture sector. This is sure to cause a change in the way the market functions with the law of demand and supply being adhered to.
The think tank argues that overproduction will be detrimental to farmers as it would bring the price of the crops down thus causing losses to the farmers. The think tank in its report published in 2017 titled ”Doubling Farmers’ Income" has said that diversification of crops is necessary if farmers have to double this income as diverse crops have a better chance of creating a market where there is less chance of overproduction.
The think tank has also said that the government should discontinue the practice of buffering sugar stocks which the government started to stabilise the price of sugar which was falling drastically.
The move is sure to attract strong reactions from the opposition and also from the farmers’ union as the crop fetches good prices for the farmers and is considered one of the most risk-averse crops.
The government has a good idea and of it and may look at alternative options like encouraging sugar mills to take up ethanol production. The government has also set a target of achieving 10% blending by 2022.
