The Hindu Business Line : AP farmers unhappy with sugar returns

Hyderabad June 21 The sugar sector in Andhra Pradesh is caught in a Catch-22 situation, with farmers alleging that returns are not remunerative while the industry saying that it has become increasingly difficult for it to carry on with the huge mismatch between cost of production and price of output.

Mr K. Harikishore Kumar Reddy, President of Bharatiya Kisan Sangh, has alleged that the Commission for Agricultural Costs and Prices (CACP) has become a puppet in the hands of the Government.

"All the meetings held by the CACP are just an eyewash. Their assessments on cost of sugar cane production do not reflect the reality," Mr Reddy, a sugar farmer from Paturu in Nellore, told Business Line.

Mr Reddy was among the farmers who attended a recent CACP meeting organised by the Federation of Farmers' Associations (FFA) to discuss the issues plaguing the sector.

Almost all farmers are unhappy with the negative returns they are getting.

"According to our estimates, a farmer loses Rs 11,980 on an acre, while the sugar factory gains Rs 7,000 and the State Government Rs 5,080 in the form of taxes," he said.

He pointed out that the Commission didn't take into consideration the rentals while estimating cost of production.

Mr N.S.V. Sharma, Secretary of the Federation of Sugarcane Growers' Associations (Andhra Pradesh), said that there should be different prices for different regions as prescribed by the Sugar Control Order, keeping in mind the variations in wages and costs of and inputs. "But there is no single instance of compliance."

Commenting on CACP meetings that take place every year to comply with the order for fixation of minimum price for sugarcane, he alleged that no tangible result or benefit was derived from the discussions in the past. "It is just an annual ritual."

Industry view

Mr K. Harinath, Executive Director of Ganpati Sugar Industries, said that the Government should come out with a national policy on issues like co-generation and ethanol production. He strongly advocated raising sugar prices.

"While the potential for co-generation is estimated at 7,500 MW, we are tapping just 10 per cent of it. As this is green power, we need to encourage it."

He also called for removing sugar from the purview of Essential Commodities Act as the output is far higher than the actual consumption levels.

He suggested that a policy be evolved to encourage exports by offering incentives at least to offset losses.

More Stories on : Sugar | Outlook | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Cyclone alert for AP coast

Plea to include grazing of Bt cotton plants in research studies

Picking up pace

Power tiller

Software to trace grapes exports to EU launched

Spot rubber suffers further setback

Cabinet nod for additional 30 lakh tonnes sugar buffer

AP farmers unhappy with sugar returns

Volumes hit 6-month high at Coonoor tea auctions

Prices ease at Kochi tea sale

Global action plan in food processing sector gets approval

Ruling steady

Pepper futures rise on buying support