Under the leadership of Gujarat Chief Minister Bhupendra Patel, the state government has taken an important decision in the interest of the cooperative sector, especially the sugarcane farmers. Agriculture and Cooperation Minister Jitubhai Vaghani gave information about this decision. He said that the state government has officially approved the prices paid to sugarcane farmers by sugar societies during the year 2007-08 to 2014-15.
With this decision of the state government Gujarat Sugar cooperative societies will get a huge economic benefit of about Rs 1500 crore, which will directly benefit more than two lakh farmers.
An economic burden of Rs 1500 crore was created
Minister Vaghani said that the sugar societies of the country generally pay the prices to the farmers cultivating sugarcane as per the Fair and Remunerative Price (FRP) decided by the Government of India. The cooperative sugar societies of Gujarat have provided maximum benefits to the farmers not only from sugar but also from by-products like molasses, ethanol and electricity generation through co-generation. As a result, sugarcane producing farmers of Gujarat have always received higher prices compared to other states in the country.
The Cooperative Minister said that in the past, the Income Tax Department had sent tax demand notices to various sugar cooperative societies of Gujarat considering prices above FRP as profit. This complex issue relating to the period 2007-08 to 2014-15 had resulted in a financial burden of approximately Rs 1500 crore on the sugar cooperative societies of the state.
Legal provision to recognize sugarcane prices
After the establishment of a separate Ministry of Cooperation by Prime Minister Narendra Modi, historic and important reforms were made in the provisions of the Income Tax Act in the year 2023 due to the efforts of the Union Ministry of Cooperation under the leadership of Union Cooperation Minister Amit Shah. According to these reforms, a legal provision was made to recognize the prices of sugarcane approved by the state government for the purpose of income tax.
In the light of this reform done by the Union Ministry of Cooperation, Chief Minister Bhupendra Patel had constituted a high level committee to make recommendations at the state level. Responding positively to the report and recommendations of this committee, the Government of Gujarat has taken a revolutionary farmer-friendly decision to officially approve the sugarcane prices paid to the farmers by the sugar cooperative societies during the year 2007-08 to 2014-15.
The base of cooperative sector will become even stronger
Gujarat Minister Vaghani made it clear that the state government is fully committed to protecting the interests of the cooperative sector and farmers. At present, the sugar cooperative societies of the state are making important contribution in the economic empowerment of the farmers by making direct payments to more than two lakh sugarcane producing farmers. He said that this decision taken by the state government will prove important in making the base of the cooperative sector even stronger and prosperous.
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