Karnataka - Bangalore

State may announce higher MSP for sugarcane

BANGALORE: The State Government is likely to announce the price for sugarcane above the Minimum Support Price (MSP) fixed by the Union Government in the second week of next month.

The cane growers had been demanding Rs.1,200 for a tonne of sugarcane against the MSP of Rs. 811 fixed by the Centre for 2007-08.

Governor Rameshwar Thakur on Friday discussed the cane price issue at a meeting of the Executive Committee and later met the representatives of growers at the Secretariat.

Addressing presspersons, Mr. Thakur said the decision on providing price above the MSP would be decided after discussions with representatives of private, cooperative, and joint sector sugar factories. All factories have been asked to commence crushing without delay. The liquidity position of factories has become critical and managements expressed their difficulties with the Government.

The Development Commissioner has been asked to hold meetings with officials of Lead Banks in districts to grant working capital to the factories, the Governor said.

The problems faced by the cane growers have been brought to the notice of Union Agricultural Minister Sharad Pawar.

A few closed factories would be re-opened soon and all cane produced in the State would be crushed, he said.

Sugarcane production has shot up significantly this year in the State on account of good monsoon. However, the price in the global markets slumped, the Governor said.

Chief Secretary P.B. Mahishi also recently held a meeting with sugar industry representatives to resolve the cane crushing problem.

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