Special Correspondent

HYDERABAD: Thirty-one out of the 38 sugar factories in the State have agreed to pay a price of Rs 1,050 per tonne of sugarcane crushed to farmers as suggested by the Government.

The managements of the remaining factories, all in Telangana region are, however, reluctant to pay the amount and have offered only Rs 960 per tonne on the ground that they are running in losses and the sugar industry, as a whole, is “in doldrums”. Disclosing these details at a press conference here on Wednesday, Sugar Minister J. Geetha Reddy and Co-operation Minister Mohd Fareeduddin expressed hope that these seven factories too would fall in line after further negotiations with them by the Government slated for Thursday.

State Advisory Price

If they did not change their stand, the State Government would be forced to announce its own State Advisory Price (SAP) over and above the minimum price already announced by the Union Government at Rs 811 per tonne.

The Ministers, who was accompanied by Congress MLAs from Medak district, where most of the seven factories are located, said the State Advisory Price to be announced by the State Government would be such that it would ensure Rs. 1,050 per tonne to the farmer depending on the (sugar) recovery rate of the cane crushed.