Fix sugarcane price at Rs 3,500 per tonne: Vaiko to govt

MDMK leader Vaiko today urged the Tamil Nadu Government to fix the State Advisory Price (SAP) for sugarcane at Rs 3,500 per tonne.

In a statement here he said the normal practice was to hold a tripartite meeting with sugarcane growers, mills and government officials. But government had announced the price 'unilaterally', he said.

Vaiko said a new SAP was necessary as cost of sugarcane cultivation had increased manifold with hike in price of inputs and labour

On Dec 21 government had announced an increase of Rs 650 in State Advisory Price (SAP) for sugarcane for 2013-14, fixing it at Rs 2,650 per tonne.

He said the centre had given Rs 7,500 crore loan to sugar mills, but was not redressing grievances of farmers. The mills earn Rs 35,000 from one tonne of sugarcane from which they produce one quintal of sugar, 150 units of Power and 35 litres of spirit, he said.

The mills do not even give Rs 10 from their profits to farmers, he said and added that government should review the price and fix it at Rs.3500 per tonne.