The Hindu : Tamil Nadu / Chennai News : Undertaking on pricing, incentives norm for new sugar mill licences

Online edition of India's National Newspaper
Wednesday, Mar 21, 2007
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Tamil Nadu

Tamil Nadu - Chennai

Undertaking on pricing, incentives norm for new sugar mill licences

Special Correspondent

New units should also set up cogeneration plants: Minister

FOR DISCUSSION: Agriculture Minister Veerapandi S. Arumugam arriving for a pre-budget meeting convened by the Special Committee for Agriculture Development in Chennai on Tuesday. — Photo: R. Ragu

CHENNAI: Licence for new sugar mills will be given only if they give an undertaking that they will pay State Advised Price (SAP) and other incentives announced by the Government to registered cane growers, Agriculture Minister Veerapandi S. Arumugham said here on Tuesday.

They should also set up cogeneration plants in their new units, he said while participating in a pre-budget meeting convened by the Special Committee for Agriculture Development.

The Minister said while cooperative and public sector sugar mills had been paying SAP and other incentives to cane growers, private mills were not ready to do so. Though they had agreed to give the statutory minimum price (SMP) announced by the Centre, many mills paid less than that.

They were yet to inform the Government whether they were ready to reimburse farmers the cost of transporting cane to mills, as directed by the State.

Farmers' demands

Referring to farmers' demands, the Minister said as the State budget was to be submitted soon, it would be difficult to consider them now.

He would consider them while presenting the demands of the Agriculture Department.

Vice-chairman of the committee K.S. Alagiri, said the Tamil Nadu farmers would not tolerate discrimination against paddy farmers. They should be paid minimum support price on a par with that of wheat. Sugar mills in northern States were paying more than those in Tamil Nadu.

As the mills were getting additional income from power production, press mud and molasses, they should give at least Rs.1500 a tonne.

The meeting, attended by farmers from different parts of the State, adopted resolutions demanding reduction in the interest rate of crop loan; setting up of direct purchase centres for paddy procurement throughout the State; adequate compensation and a rehabilitation programme for farmers whenever their lands were acquired for public purpose; cent per cent subsidy for organic farming and purchase of micro-irrigation equipment; and expansion of the public distribution system by supplying pulses and other essential commodities through fair price shops.

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