carao
15-11-2007, 07:25 PM
The Centre has asked state governments which fix their own rates for sugarcane, such as Uttar Pradesh, to follow its guidelines regarding the cane prices paid by sugar mills to farmers.
“In the entire southern and western India, sugar mills are in operation. The problem seems to be where there is State Advisory Price (SAP) for sugarcane, who are not following the national guidelines,” food and agriculture minister Sharad Pawar said.
“It is a irrational thing. We are requesting the state governments to follow the Centre’s guidelines,” Mr Pawar said. He said problems in the sugar sector were confined to certain parts of the country.
“The situation in Uttar Pradesh is something different. Uttar Pradesh and some other states have introduced their own SAP but the rest of country have accepted the price fixed by the Centre,” he said, adding state governments are consulted before fixing the Statutory Minimum Price (SMP).
The Uttar Pradesh government had recently announced the SAP at Rs 125 per quintal, which is well above the SMP fixed by the Centre at Rs 81.18 for procuring cane from farmers during 2007-08 season that began in October this year.
Mills in the northern state, the country’s second-biggest producer of the sweetener, have not started crushing this season as they say the sap for the raw material is higher than the sugar prices in the domestic market. “The sugar industry is in difficulties due to excess production,” the farm minister said.
India produced about 285 lakh tonne of sugar in 2006-07 season ending September this year. Sugar output is likely to cross 300 lakh tonne in 2007-08 season. Domestic consumption is estimated at 200 lakh tonnes annually
“In the entire southern and western India, sugar mills are in operation. The problem seems to be where there is State Advisory Price (SAP) for sugarcane, who are not following the national guidelines,” food and agriculture minister Sharad Pawar said.
“It is a irrational thing. We are requesting the state governments to follow the Centre’s guidelines,” Mr Pawar said. He said problems in the sugar sector were confined to certain parts of the country.
“The situation in Uttar Pradesh is something different. Uttar Pradesh and some other states have introduced their own SAP but the rest of country have accepted the price fixed by the Centre,” he said, adding state governments are consulted before fixing the Statutory Minimum Price (SMP).
The Uttar Pradesh government had recently announced the SAP at Rs 125 per quintal, which is well above the SMP fixed by the Centre at Rs 81.18 for procuring cane from farmers during 2007-08 season that began in October this year.
Mills in the northern state, the country’s second-biggest producer of the sweetener, have not started crushing this season as they say the sap for the raw material is higher than the sugar prices in the domestic market. “The sugar industry is in difficulties due to excess production,” the farm minister said.
India produced about 285 lakh tonne of sugar in 2006-07 season ending September this year. Sugar output is likely to cross 300 lakh tonne in 2007-08 season. Domestic consumption is estimated at 200 lakh tonnes annually