Farmers, industry unhappy with sugarcane SAP for different reasons

Industry says it will further add to the losses

The Tamil Nadu government has fixed state advisory price (SAP) for sugarcane at Rs 2,650 a tonne for the crushing season 2013-14. Recently, the Centre had fixed the fair remunerative price for sugarcane at Rs 2,100 a tonne. However, farmers and the industry have expressed their dissatisfaction over the increase, though reasons were different.

T Subbu, district secretary of farmers’ organisation Tamizhaga Vivasayigal Sangam, said the farmers were expecting at least Rs 3,500 a tonne. According to him, Rs 2,650 a tonne should be on field rate. But the SAP is inclusive of transportation charges.

He said the SAP is not sustainable, as input costs are on the rise. For instance, fertiliser rates have doubled to Rs 1,000 for DAB between the two seasons. Labour cost (which accounts for 40-45 per cent of the cost) has also increased.

N Ramanathan, managing director, Ponni Sugars (Erode) Ptv Ltd, said, “At a time when sugar prices have considerably crashed and are hovering below viable levels, the hike in SAP would significantly add to our losses.”

Sugarcane is cultivated In 865,000 acres in the state. The state government has been taking various initiatives to enhance production.

The State government is taking various initiatives including new technologies like Sustainable Sugarcane Initiative, Drip Irrigation, etc.

The small and marginal farmers who adopt Drip Irrigation technology have been given 100 per subsidy and others 75 per cent subsidy. The ceiling on one acre fixed for availing of the subsidy has been waived, according to the State Government.