Date:10/10/2008 URL: http://www.thehindu.com/2008/10/10/stories/2008101060031000.htm

Tamil Nadu

Cane farmers demand higher procurement price

Special Correspondent

CUDDALORE: The Consortium of Indian Farmers’ Associations has demanded upward revision of sugarcane procurement prices as fixed by the Commission for Agricultural Costs and Prices.

State general secretary of the consortium R.V. Giri told The Hindu that the Commission had fixed the statutory minimum price (SMP) of Rs.1,550 per tonne of sugarcane.

It was customary for the State government to give an incentive of Rs.200–Rs.200 a tonne over and above the SMP.However, the Centre had directed the State government to adhere to the 2007-08 SMP of Rs.811.80 a tonne to which the Consortium was strongly opposed.

He pointed out that last year along with incentive Tamil Nadu had offered the State Administered Price (SAP) of Rs.1,034 a tonne of sugarcene with 9 per cent recovery and an additional rate of Rs.9 per 0.1 per cent of excess recovery.

Earlier, about 5.25 lakh acres were under sugarcane but owing to migration of labour and escalating costs of inputs and transportation costs, the area under cane cultivation had come down by 40,000 acres.

Therefore, it was imperative the State government fixed the SAP as the sugarcane season (from October 1 to September 30 next year) had already begun, Mr. Giri said.