Indian sugar mills association

Cane price: AP farmers have to

Date:	17 Nov 2011

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News ID:	694

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Hyderabad, Nov. 16: Unlike their peers in Maharashtra and Uttar Pradesh, sugarcane farmers in Andhra Pradesh will have to wait for two more weeks to know what price factories will pay them this crushing season.

Echoing farmers` demand, the State Government has asked the factories in private sector to pay not less than Rs 2,500 a tonne of sugarcane, considering the sharp rise in cost of production.

“We have asked them to share profits from by-products. Cost of production has gone up for farmers making it difficult for them carry on. Unless they survive, sugar industry cannot,” Dr J. Geeta Reddy, Minister for Sugar and Major Industries, told Business Line.

She held day-long deliberations with private and cooperative sector representatives on Wednesday to discuss the cane pricing and other issues.

Privates factories initially did not the like the idea of hiking the price. During the interaction before the Minister turned up, they said cost of conversion (sugarcane to sugar) too had gone up significantly. With sugar prices stagnating at Rs 2,600-2,800, it is not possible for giving hike, representatives of private factories asserted.

They, however, later told the Sugar Minister, Ms J. Geeta Reddy, that they would rethink and get back to the Government.

Farmers in the State have been demanding for Rs 2,500-3,500 a tonne. Several political parties and their farmers` organisations too asked a minimum of Rs 2,500. The cane price ranged between Rs 1,700 and Rs 2,100 in different factory areas in the State.

With area coming down as farmers shifted to other crops, Andhra Pradesh slipped to sixth position from fifth.

Average yields too dipped to 74 tonnes a hectare in 2009-10 from 82 a hectare in 2006-07.

There are 46 factories in the State, including 25 in the private sector, with a total installed capacity of 1.56 crore tonnes.

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