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LATEST NEWS UPDATES | Farmers upset over delay in payment for sugarcane by Nikhil Deshmukh

Farmers upset over delay in payment for sugarcane by Nikhil Deshmukh

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published Published on Oct 28, 2010   modified Modified on Oct 28, 2010

Farmer organisations Shetkari Sanghatna and the Swabhimani Shetkari Sanghatna are up in arms over the delay in announcing the first payment instalment for sugarcane by sugar factories in the state.

Normally, the sugar factories announce the first instalment before starting of the actual crushing. This is done mainly to ensure supply of adequate and quality sugarcane. This year, there is excess production of sugarcane and many factories have not yet announced the first instalment even as the crushing season has officially started.

According to the sugar commissionerate, 25 sugar factories in the state have already started crushing operations and have so far crushed mere two lakh tonnes of sugarcane. The estimated availability of sugarcane is 825 lakh tonnes, which is likely to produce over 90 lakh tonnes of sugar.

Demanding higher rate for sugarcane, MP Raju Shetty, who leads the Swabhimani Shetkari Sanghatana, has announced a rail-roko agitation at the Miraj railway junction on Friday.

Raghunath Patil, leader of the Shetkari Sanghatna, said, "The initial estimate of sugarcane availability went horribly wrong last year, and, instead of the estimated sugar production of 48 lakh tonnes, the state ended up producing 70 lakh tonnes. Factories had feared that they would face shortage of sugarcane and had offered higher price for the same. Prices of sugar went down significantly after the actual figures of sugar production were released. With the state expecting to produce 90 lakh tonnes of sugar this season, fear of sugar prices crashing looms large and factories are reluctant to announce payment figures".

The Maharashtra state federation of co-operative sugar factories has already made representations to the Union government about lifting ban on export of sugar to stabilise prices.

Commenting on the issue, Patil said, "Once the ban on export is lifted, sugar factories will get assured markets for sugar and only then will they announce the first instalment of sugarcane payments for the current season. As it is, the factories have shown scant respect to the state government's appeal to start crushing from October 1, to ensure that all cane gets crushed. The delayed start to the season will make farmers lose patience and they might accept cheaper rates".

Patil said that his organisation was firm on its demand of Rs 2,200 per tonne of sugarcane as first instalment. As per the policy of paying fair and remunerative price, the payment is expected to be Rs 1,500 per tonne. "We will intensify the agitation further to press for higher price," he said.


The Times of India, 28 October, 2010, http://timesofindia.indiatimes.com/city/pune/Farmers-upset-over-delay-in-payment-for-sugarcane/articleshow/6824543.cms


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