Even though 2014-15 crushing season began around two months ago the State government has not yet announced crucial State Advised Price (SAP) for the cane.
Sugar Commissioner, in his communication dated December 19 sent to public sector and cooperative sugar mills, asked the mill managements to give only Fair and Remunerative Price (FRP) announced by the union government (Rs.2,200 per tonne of sugarcane with 9.5 percent sugar content). He said mills would be communicated on ‘prices other than FRP’ after getting the GO.
Usually the final price a sugar cane farmer gets from the mills will consist of two components namely FRP (formerly known as Statutory Minimum Price) announced by centre and State Advised Price (SAP) announced by the respective states over FRP.
Last year, Centre Announced Rs.2,100 as FRP and Tamil Nadu government announced Rs. 450 over FRP plus Rs. 100 for transportation.
Though 18 cooperative and public sector mills gave this price, private sugar mills defied the state advised price and stuck to the previous year’s price of Rs.2,250 and with held the difference of Rs.300.
D.Ravindran, State president of Tamil Nadu Sugarcane Farmers Association told The Hindu that private sugar mills, by withholding Rs.300 per tonne of cane supplied last year, owe Rs.400 crore to farmers. Hence we demanded that the State give a No-Objection Certificate to farmers attached to private mills to move their cane to cooperative sugar mills. Now this announcement turns the cooperative mills less competitive as private mills announced Rs.2,300.
The State should have announced SAP by this time. At least public sector and cooperative sugar mills should have disbursed last year’s price pending announcement of fresh SAP. Sugar Commissioner Mahesan Kasirajan has agreed to implement last year’s price until SAP was announced by government. Now the communication asking the mills to give only FRP pending announcement of SAP comes as a shock and “it seems a planned move to benefit private sugar mills. We demand immediate withdrawal of the order and immediate announcement of SAP,” Mr.Ravindran said.
