Sugar mills in Tamil Nadu have welcomed the ‘balanced’ approach by the State Government in pricing sugarcane for the 2012-13 season.

Reacting to the announcement on Monday in which the State Advised Price (SAP) for a tonne of sugarcane was fixed at Rs 2,350 linked to a sugar recovery of 9.5 per cent, representatives of the South Indian Sugar Mills Association said it is a ‘fair’ price that takes into account the viability for farmers and sugar mills.

FARMERS UPSET

Farmers, however, have expressed dissatisfaction over the cane price.

The State Government announced the price taking into account the Fair and Remunerative Price of Rs 1,700 set by the Unionl Government and last season price of Rs 2,100 a tonne The price includes Rs 100 a tonne towards transport cost.

M. Manickam, President of the South Indian Sugar Mills Association, and Vice-Chairman of Sakthi Sugars, said the hike in sugarcane price is a ‘fair decision’ and fully passes on the Centre’s hike. Palani G. Periaswamy, Executive Chairman, Dharani Sugars, described the decision as a `correct and appropriate step’. N. Ramanathan, immediate past president of the Association and Managing Director, Ponni Sugars, said it will be a `high cost’ year for farmers and sugar mills.

R.V. Giri, State General Secretary, Consortium of Indian Farmers Association, said farmers are disappointed with the price as the cost of production has increased.

AP fixes Rs 3,000/tonne:

The Andhra Pradesh Government has asked the private and joint venture sugar factories in the State to consider the demand of sugar cane growers to pay Rs 3,000 a tonne of cane keeping in view of abnormal increase in cost of cultivation.

“There is a huge increase in cost of cultivation, fertilisers, harvesting, diesel and labour charges. Also, they have to wait for more than 15 months to get returns on their produce,” Ben-Hur Ekka, Commissioner of Sugar and Cane Commissioner of Andhra Pradesh, has said in a statement here.

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