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The association representatives said that the Consortium of Indian Farmers’ Association (CIFA) has asked the government to announce the sugarcane price in advance of the planting seasons to help peasants determine the crop viability.
Tamil Nadu farmers, who grow sugarcane, are seeking for a “field price” of Rs 2,000 per tonne and are not comfortable with the announcement of Rs 1,437.40 per tonne by the government of Tamil Nadu for the 2009-10 season.
Nevertheless, private sector sugar mills are ready to offer more than Rs 1,650 per tonne, along with paying the transportation costs.
The farmers had taken various resolutions at a CIFA meet previous this week including sugarcane pricing.
The peasants have made up their minds to not register their sugarcane produce with the mills in their areas of expertise as they notice that the sugar mills give money for unregistered cane, somewhere equal to Rs 1,800 per tonne, an effective ‘black market’ for cane. CIFA representatives informed that even the jaggery manufacturers are ready to give Rs 2,000 to 2,200 per tonne of cane.
Normally, sugarcane rates are declared before the sugar season (October-September) when the mills begin pulverizing the sugarcane which becomes ripe over the previous 10 months to one year.
Shortfall of sugarcane
Now, peasants are seeking for the announcement of prices in advance of the planting season. This implies that for 2010-11 season the farmers would require to gain knowledge about the sugarcane price in October the present year.
Sugar mills are facing the problem of steep sugarcane shortfall as farmers have switched their land to other crops, comprising rice, because basic prices have witnessed a sudden hike while there has not been a similar hike in the prices of the sugarcane in the earlier season. Similarly, the high yields in the previous seasons paved way for low sugar rates of Rs 12 to 15 per kg in 2007 and early 2008. This in turn had affected the ability of the sugar mills to dish out more for sugarcane. But, industry representatives say that a subsequent increase in sugar prices has again convinced mills to pay more.
At the same time, facing the problem of sugarcane shortfall for the 2009-10 season, the mills have begun to announce good prices over the basic rates. One of the mills in private sector has declared Rs 1,680 per tonne along with bearing the transportation costs, says a representative of the South Indian Sugar Mills’ Association.
CIFA is asking for Rs 300 per tonne extra for the cane delivered in 2008-09 as sugar rates touched more than Rs 3,500 per quintal during the season.
Cooperative loans
CIFA also wanted the government of Tamil Nadu to cancel the ‘ways and means advance’ of Rs 827 crore given to the cooperative sector sugar mills over the years. They say that this is inclusive of an interest part of Rs 488 crore. The total loss experienced by the 17 cooperative and public sector mills was Rs 1,653 crore till March 2008. The Hindu Business Line
October 15, 2009
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