Date:07/11/2009 URL: http://www.thehindu.com/2009/11/07/stories/2009110751720400.htm

Tamil Nadu - Chennai

Jayalalithaa seeks revised SAP for sugar cane

Special Correspondent

CHENNAI: All India Anna Dravida Munnetra Kazhagam general secretary Jayalalithaa has urged the State government to announce revised State Advised Price (SAP) for sugar cane based on the new price announced by the Centre recently.

In a statement here on Friday, she said that after the Centre fixed Rs.1,077.60 a tonne as Minimum Support Price, the Tamil Nadu government announced Rs.359.80 more than the MSP and fixed the State Advised Price at Rs.1437.40.

But, the Centre, on October 30, announced a further hike in MSP calling it Fair and Remunerative Price (FRP). The FRP for sugar cane had been fixed at Rs.1,298.40 a tonne.

The AIADMK leader urged the State government to increase the SAP for sugar cane in proportion to the raise in the FRP (revised MSP) announced by the Centre. If the State government stuck to the existing SAP, then the farmers would be getting only Rs.139 more than the revised FRP announced by the Centre.

Karunanidhi criticised

Ms. Jayalalithaa also condemned Chief Minister M. Karunanidhi for remaining silent when the Centre had curtailed States’ power in fixing their own price for sugar cane.

The Centre had announced that hereafter it would not be obligatory for the sugar mills to pay the SAP fixed by the States and it was enough if they paid the FRP announced by the Centre. If the State announced any increase in price over and above the FRP, then it was for the States to pay the difference and not the mills.

By this announcement, the Centre had taken away the States’ power of fixing additional price for sugar cane, she said.