Business Daily from THE HINDU group of publications
Sunday, Aug 26, 2007
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Sugar Agri-Biz & Commodities - Agricultural Policy States - Maharashtra Bailout plan for farmers with un-harvested cane
Harish Damodaran New Delhi, Aug. 25 After the Maharashtra Government’s decision to pay sugarcane farmers up to Rs 25,000 per hectare for their standing crop that lay uncrushed this season, it is now the Centre’s turn to moot a similar compensation package for all cane-growing States. “A proposal is under consideration to provide Rs 25,000 per hectare from the Central kitty to growers whose cane could not be lifted by mills due to the unprecedented sugar glut. This would be given subject to the States making matching contribution, as Maharashtra has already done,” official sources told Business Line. Record crushing
During the 2006-07 season (October-September), mills in Maharashtra crushed a record 798 lakh tonnes (lt) of cane, producing 90.92 lt of sugar at an average recovery of 11.39 per cent. But despite this, about 35 lt of cane in 52,400 hectares did not get lifted, forcing farmers to burn the crop or leave it un-harvested. To bail out the distressed growers, Maharashtra has announced a compensation of Rs 25,000 per hectare, entailing an outgo of Rs 131 crore. The Union Agriculture Minister, Mr Sharad Pawar, is now pushing for a matching assistance from the Centre. “While the proposal theoretically covers cane growers across the country, it would practically amount to a Maharashtra-centric package. This is because there is hardly any incidence of un-harvested cane in other States, where the problem is more of mills not paying up rather than not crushing,” the sources pointed out. Further, Maharashtra has no alternative sweetener industry, unlike other States that have gur and khandsari units in addition to sugar mills. As a result, while farmers outside Maharashtra may not have got fully p aid for their cane, neither has their crop gone un-harvested in the fields, the sources added. The Centre’s latest initiative may not particularly be welcomed by sugar mills in Uttar Pradesh, Andhra Pradesh or Tamil Nadu. “As it is, we face a cost disadvantage vis-À-vis Maharashtra. Our cane price is Rs 125 p er quintal on an average sugar recovery of 9.5 per cent, whereas they have only paid Rs 112.5 (Rs 90 first advance plus Rs 22.5 transport and harvesting charges) on a higher recovery of 11.4 per cent. The proposed measure will not be of much help,” a Uttar Pradesh miller complained.
Related Stories: ‘Sugar mills owe cane growers Rs 5,000 crore’ UP sugar mills begin to pile up cane arrears Rs 240 cr allocated for interest subsidy to Maharashtra farmers 35,000 tonnes tied-up cane lying in AP fields More Stories on : Sugar | Agricultural Policy | Maharashtra
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