The Hindu : Tamil Nadu News : State-advised price for sugar cane inadequate: farmers

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Sunday, Nov 18, 2007
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Tamil Nadu

Tamil Nadu

State-advised price for sugar cane inadequate: farmers

S. Vydhianathan

CHENNAI: Sugar cane farmers say the State-advised price for sugarcane announced by the State Government on Friday is not up to their expectation.

According to them, last year the Government had announced an additional Rs. 222.50 a tonne apart from the statutory minimum price of Rs. 802.50. This year it had dropped to Rs. 222.20 a tonne along with the SMP of Rs.811.80.

A major apprehension among sugar cane growers is whether sugar mills in the State will pay the new price fixed by the State Government. Last year cooperative and State owned mills were able to clear their dues to farmers, thanks to release of funds by the State Government. It released Rs. 205.69 crore to cooperative and State-owned mills at various point of time since March this year to clear the dues.

On the other hand some private mills did not pay even the statutory minimum price announced by the Centre. They paid less than the SMP claiming it was not remunerative for them to pay either the SMP or the SAP.

K. Manikandan, president of the Federation of Sugar cane Farmers Association, said private mills owed nearly Rs. 150 crore to their registered farmers. While they were not purchasing cane from the registered farmers they were getting their supply from unregistered growers at a price far less than the SMP. He said cultivation would be profitable only if the cane price was fixed at Rs. 1,500 a tonne.

K. Balakrishnan, general secretary of the Tamil Nadu Vivasaigal Sangam, said the SAP was “disappointing.” The Centre, while fixing the SMP, took into account only the sugar price. It was not taking into account molasses or bagasse while fixing the price.

V. Duraimanickam of the Communist Party of India, welcoming the new SAP, wanted the Government to take steps to clear dues to farmers. Some cooperative mills were yet to issue cutting orders to their registered farmers, causing heavy loss to them.

According to official sources, the financial condition of a majority of cooperative and government-owned mills is not sound, making it difficult for them to pay the price fixed by the State. Though cooperative mills in the last sugar year crushed 25 per cent more than their crushing capacity, they were not able to break even. They require the State’s help to clear their dues. The only way to make the sugar mills to break even is to modernise them.

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