Sugar factory owner not happy with the govnt sugarcane price

Written By Unknown on Sabtu, 30 November 2013 | 22.44

BELGAUM: All the sugar factories in Maharashtra and Karnataka will have to be closed-down if government enforces rate of Rs 2,500 per tonne of sugarcane said chairman of Renuka Sugar's Vidya Murkumbi.

Vidya said that it was unfortunate that a farmer died during the protest in front of Suvarna Vidhana Soudha. "Due to assured cane prices, the area under cane cultivation is almost increased by 30 per cent from 2010 to 2013, due to assured cane prices, resulting in increase in sugar production by 34 per cent from 187 lakh tonne in 2010 to 250 lakh tonne in 2013; while consumption is increased by just 10 per cent from 213 lakh tonne in 2010 to 235 lakh tonne in 2013. At the same time, continuous increase in cane prices has been pulling down the industry to sickness" added Vidya.

"To save both farmer and industry, which are solely dependent on each other, they should sit together along with government to prepare the roadmap as by what structure of cane price industry and farmer both will survive. We should keep in mind that since we are producing more than consumption, we have to be competitive in world market as exports will be inevitable. Even if imports are stopped, which have already stopped in last 2 months, the excess sugar produced has to be sold in the competitive world market. If not exported and if sugar production continued to be surplus, even to pay FRP, government will have to compensate both the farmers and industry to crush the cane" added Vidya. She also mentioned that the sugar industries are ready for discussion with the government for solving the issue amicably.


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