The Hindu Business Line : 35,000 tonnes tied-up cane lying in AP fields

Hyderabad June 10 The meeting of Commission for Agricultural Costs and Prices here on June 13 on SMP (statutory minimum price) assumes significance as the sugar sector in the State witnessed unprecedented problem of glut this year.

Glut

The fact that about 35,000 tonnes of tied-up sugarcane (or the cane that is agreed to be bought by the sugar factory) are still left in the fields even after weeks of normal closure of the season in Zaheerabad shows the gravity of the problem.

About 5,000 tonnes non-tied-up cane too are lying in the fields, awaiting cutting and crushing. While farmers are alleging that they're losing a crop year without even getting what they spent, a senior representative of a sugar factory said on condition on anonymity that they could not help.

Prices dip

"Recovery rates fell down to as a low as 5-6 per cent from the average of 9.5 per cent," he pointed out.

Steep dip in sugar prices and molasses in the market too made it a difficult proposition for the factories to show any enthusiasm.

The June 13 meeting is likely to discuss with farmers and Sugar Department officials on SMP and other issues that dogged the sector.

Farmers' plea

The Federation of Farmers' Associations (FFA) has called for rationalisation of SMP for sugar keeping in mind the realistic conditions. "The SMP should be based on scientific assessment of actual incurred by the farmers. The present system of arriving at cost of cultivation by statistical personnel is not reflecting the actual situation," Mr P.V. Subbaiah Chowdhury, a senior advisor of FFA, told Business Line.

Citing the example of Maharashtra, he wanted issues such as field delivery of cane and compensation for loss of crop needed to be taken immediate attention.

While calling for utilisation for Sugar Development Funds for developing infrastructure he said the credit support should be based on the actual need with a low rate of interest.

"While automobiles are available at rates of seven per cent, the farmers are being charged almost double that," he said.

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