The Hindu : Tamil Nadu / Tiruchi News : Cane growers resent move to raise base sugar recovery rate

Online edition of India's National Newspaper
Sunday, Nov 21, 2004

Tamil Nadu

Tamil Nadu - Tiruchi

Cane growers resent move to raise base sugar recovery rate

By Our Staff Reporter

TIRUCHI, NOV. 20. The Centre's move to raise the base recovery rate of sugar from 8.5 to 9 per cent linked to the statutory minimum price (SMP) from the 2005-06 season has led to resentment among the cane growers of the State.

The SMP (at Rs.74.50 a quintal) itself has been a disappointment to the farmers and the decision of the Cabinet Committee on Economic Affairs to increase the base recovery rate has come as a shock as it would "adversely affect" their interests. The recovery rate is to be determined for the entire crushing season of the factories instead of the peak period from November to March 31.

Farmers' representatives said that the SMP announced by the Centre for the current year was fixed by the previous NDA Government. The Government had not taken into account the hike in production costs. Farmers said that the sugar recovery rate in a majority of sugar factories in Tamil Nadu averaged only between 8.5 to 9 per cent and cane growers would stand to lose about Rs.50 to 100 a tonne due to the increase. Farmers allege that the move was aimed at satisfying sugarcane growers of Maharashtra at the expense of farmers in other States.

The president of the Kothari Sugars Cane Growers Association, R.Namachivayam, said that only nine of the 19 private sugar mills in Tamil Nadu were able to achieve a recovery rate of more than nine per cent. The others could manage a recovery rate of below nine per cent. And this was also the case with the cooperative mills.

Major handicap

The move to determine the recovery rate of the mills for the entire crushing season would be a major handicap for the cane growers as the recovery rate during the summer season is bound to be low.

The move would only benefit cane growers in Maharashtra where the mills were able to achieve 12 per cent recovery, Mr. Namachivayam said, and demanded that the Centre reconsider the move.

Terming the decision "unacceptable," the general secretary of the EID-Parry Pettavaithalai Sugar Factory Cane Growers Association, V.Gopalakrishnan, said that some of the mills in Tamil Nadu were already thinking in terms of implementing the decision. Such a move would provoke resistance from the cane growers.

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