The factory is also giving 20 per cent subsidy on PVC borewell pipes, mechanisation, power generator, and pesticides

The KCP Sugar and Industries Corporation Limited said that sugarcane growers, who were supplying to their Vyyuru factory, were getting monetary benefit of Rs.2,900 to Rs.2,950 per tonne.

The Chief Operating Officer (COO) in a release here said that apart from the Rs.2,400 being paid directly, growers were being paid per acre Rs.13,000 for mechanised plantation, Rs.10,000 for manual plantation, Rs.1,500 for water treatment to seed, Rs.6,000 for first ratoon crop and Rs.7,000 for second ratoon crop.

The factory was also giving 20 per cent subsidy for PVC borewell pipes, mechanisation, power generator and pesticides. It was also paying a subsidy of Rs.5,000 per electric motor and Rs.10,000 per oil engine. The factory also spent Rs.1 crore for laying of rubbish roads and Rs.20 lakh for digging of drainage channel. The factory was also giving farmers advance of Rs.20,000 per acre toward cultivation and labour charges for harvesting.

The COO said that the Government was not taking initiative to formulate timely and appropriate steps (for) governing export and import of sugar. There were 640 factories across the country and not even 40 of them had made profit, the COO said. The claim by the Federation of Sugarcane Growers Associations that sugar factories in the State were making profit was not correct, he said.

“The factor of profit was also governed by policies of the Government and not in the hands of the factory managements or farmers,” the COO said. Farmers would incur a loss if they got a yield of less than 30 tonnes per acre and a profit if they got an yield of over 40 tonnes, he said.

The Government was earning Rs.2,400 per tonne of sugarcane cultivated as revenue, he said.