Gujarat Sugarcane Farmer News: What will be the end to the problems of sugarcane farmers? Will Gujarat government’s decision increase the income of farmers? Will the cooperative sector get new strength? Know the whole story of the big farmer-friendly decision of Bhupendra Patel government.
Gandhinagar. Under the leadership of Gujarat Chief Minister Bhupendra Patel, the state government has taken a big decision in the interest of the cooperative sector and especially the sugarcane farmers. Giving information, Agriculture and Cooperation Minister Jitu Vaghani said that the state government has officially approved the sugarcane price given to farmers by sugar cooperative societies between the years 2007-08 to 2014-15. This decision will provide financial relief of about Rs 1500 crore to the sugar cooperative societies of the state and more than two lakh sugarcane farmers will be directly benefited.
There was a long-running dispute over payment more than FRP.
Agriculture and Cooperation Minister Jitu Vaghani said that sugar mills across the country generally pay farmers as per the Fair and Remunerative Price (FRP) decided by the Central Government. However, Gujarat’s cooperative sugar societies provide farmers with benefits not only from sugar production but also from additional income from molasses, ethanol and co-generation. For this reason, farmers of Gujarat got more payment than other states.
But the Income Tax Department had issued tax demand notices to many cooperative sugar societies considering the payment made in excess of FRP as profit. This case was related to the payment between the year 2007-08 to 2014-15, due to which there was a possibility of additional financial burden of about Rs 1500 crore on the cooperative societies.
Reforms of the Central Cooperative Ministry open the way to solution
After Prime Minister Narendra Modi created a separate Cooperative Ministry, important changes were made in the Income Tax Law in the year 2023 under the leadership of Union Cooperative Minister Amit Shah. Under the new provisions, the sugarcane price accepted by the state government was given legal recognition for the purpose of income tax.
Following these reforms, the Gujarat government constituted a high-level committee to review the issue at the state level. Taking positive decision on the recommendations and report of the committee, the state government gave formal approval to the sugarcane price given to the farmers during 2007-08 to 2014-15.
More than two lakh sugarcane farmers will get direct benefits
This decision of the government will provide huge financial relief to the sugar cooperative societies of Gujarat and will strengthen the cooperative sector. The Minister said that at present the cooperative sugar societies of the state are making direct payments to more than two lakh sugarcane farmers and playing an important role in the economic empowerment of the farmers. He said that the state government is fully committed to protecting the interests of the cooperative sector and farmers. This decision is not only in the interest of the farmers but it will also strengthen the cooperative structure of the state.