Gov't moves to defuse sugar cane price row

The pledge came after opposition parties paralyzed business for a second day Friday in parliament to press the farmers' cause.

The Congress-led government had announced a nationwide base price of 129.84 rupees (US$2.78) per 100 kilograms (220 pounds) for the current crop-growing season.

But farmers took to the streets in Indian capital New Delhi on Thursday to demand the price be at least 280 rupees per 100 kilograms, citing higher labor and input costs such as diesel prices.

Railways Minister Mamata Banerjee said an emergency meeting chaired by Finance Minister Pranab Mukherjee decided to ensure sugar cane growers did not suffer.

“The farmers will be protected,” Banerjee told reporters after the meeting of the United Progressive Alliance Government in New Delhi.

“We will rectify any condition which may have upset the growers' community,” she said.

The issue was seen as a test of the government's vow to boost the prosperity of India's impoverished farmers.

The Press Trust of India quoted Sushma Swaraj, a leader of the main opposition Bharatiya Janata Party, as saying the group was satisfied with the government's decision.

The row has delayed crushing at a number of mills in India, the world's second-largest producer of sugar, as farmers have refused to supply sugar cane. It comes as a world sugar shortage has resulted in a doubling of sugar prices. India, which has swung to being a net importer from exporter, is expected to produce around 16 million tons of sugar in the 2009-10 season from October to September, far below its annual consumption needs of 23 million tons.

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