The State government is not contemplating rolling back the State Advised Price on sugarcane procurement. “Last week, we announced the price. There is no change in our position,” said a senior official. This year’s price is Rs 2,650 a tonne.
Representatives from sugar industries, at a recent meeting with government officials, wanted the government to abolish the Value Added Tax of 5%, pay the differential price of Rs. 300 a tonne to farmers and also revise the electricity tariff for co-generation of power by sugar mills.
“Though they have conveyed to us their difficulties in purchasing sugarcane at the price prescribed by the government, they have not indicated to us what price would be acceptable to them,” the official said.
But, the issue is to ensure a “fair and remunerative” price to farmers. This is why the government has been following the practice of stipulating the price, an act falling within the domain of Sugarcane Control Order, the official explains. As for the issue of sugarcane prices running low, the official says that the fluctuations, either way, constitute an integral part of any commercial or trading activity, which industry should be able to absorb.
Even last year, the industry has about Rs. 340 crore more to pay to the farmers, he noted.
The State is sitting on massive heaps of sugar, due to surplus production for the fifth consecutive year. The sugar mill owners feel that situation could worsen if the government does not take any action.
“Nothing has moved forward,” Palani G Periaswamy, president of The South Indian Sugar Mills association, said.
“The government has to find a way to help this industry and make it sustainable. There is no commercial viability with the current prices,” says, Rajshree Pathy, chairman and managing director, Rajshree Sugars and Chemicals Ltd.
