Financial Daily from THE HINDU group of publications
Friday, Feb 10, 2006
Financial Daily from THE HINDU group of publications Friday, Feb 10, 2006 |
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Agri-Biz & Commodities
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Sugar Government - Agricultural Policy TN asks private sugar mills to pay SAP R. Balaji
Chennai , Feb. 9 SUGARCANE farmers in Tamil Nadu are in for a windfall as private sector sugar mills have been asked to pay the State Advised Price (SAP) for sugarcane. This will mean farmers could earn Rs 50-100 more on each tonne of sugarcane, depending on the recovery in each mill. The sugarcane output this season is estimated at 200 lakh tonnes of which a little over 50 per cent will go to the private sector mills. Till now, private mills were of the view they were outside the purview of SAP and had negotiated with farmers to pay around Rs 1,010 a tonne. However, a State Government order passed on February 7 has clearly fixed the SAP that each private mill will have to pay to the farmers. The price ranges from Rs 1,014 to Rs 1,128 a tonne for each mill. SAP will ensure a minimum price of Rs 1,014 a tonne of sugarcane, linked to 9 per cent sugar recovery. As an incentive, the mill would have to pay Rs 8.80 a tonne more for every 0.1 per cent increase in recovery. Mills caught by surprise: The order has caught sugar mills by surprise. They say this price would not apply to the private mills but only to the cooperative and public sector mills. According to sugar industry sources, the industry had been hoping for concessions on purchase tax, which was among the highest in Tamil Nadu, and expansion of the ethanol programme to cover the entire State. Earlier, the State Government has been urging the private sector mills to pay SAP. The mills in turn had been negotiating for concessions in purchase tax and licences to increase ethanol output. This would have helped to augment their revenues.
More Stories on : Sugar | Agricultural Policy | Tamil Nadu
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