The Hindu : Andhra Pradesh News : Sugar unit fixes crushing target

Online edition of India's National Newspaper
Wednesday, Nov 07, 2007
ePaper

Andhra Pradesh

Andhra Pradesh

Sugar unit fixes crushing target

Correspondent

VIZIANAGARAM: The target for crushing sugarcane at the Sri Vijayarama Gajapathi Cooperative Sugars Limited (Bhimasingi Sugars) for the ensuing season that is expected to begin from November 25 was fixed at 1.80 lakh tonnes. The exact date will be made known at the general body meeting of the factory on November 22.

Managing Director of the factory G.V. Ramaiah told The Hindu on Tuesday that sugarcane under the factory zone was raised in 12,000 acres and the yield per acre was likely to be 18 tonnes.

Recovery rate

He said that 2,24,676 tonnes against the target of 1.65 lakh tonnes was crushed in the last season that began on November 5, 2006, and ended on June 20, 2007. The average recovery rate dropped to 9.50 per cent due to prolonged crushing from 10.26 per cent recorded the previous season, he said, and added that the government released Rs. 4.50 crores as loan for clearing the balance amount of Rs. 79 per tonne to farmers. The support price announced for sugarcane last year was Rs. 979 per tonne. The arrears would be paid from Wednesday, Mr. Ramaiah said.

Some 1.10 lakh tonnes of sugar was now stored in the factory and it would take at least one year for clearing the stock. The production cost per quintal of sugar was Rs. 1,500 and the market rate fixed for lifting per quintal was Rs. 1,250, which means the factory was losing some Rs. 250 on every bag of sugar sold.

Quality

Moreover, the quality of sugar drops automatically if kept unsold for 12 months, he said. When asked about the other factory in the private sector in the district earning profits, he said that notwithstanding the government release order, the private managements obtained stay order from court and were clearing stocks when the market price was in upswing.

He said a proposal to convert the loan amount of Rs. 20 crores received from the government into equity was pending clearance.

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