Cane growers seek hike in procurement price

[Nemani Chandrasekhar]

Other States - Orissa   

Cane growers seek hike in procurement price

Staff Reporter
http://www.hindu.com/2009/10/15/stories/2009101553130300.htm

BERHAMPUR: Sugarcane growers feel that sharp decline in the sugarcane cultivation in Ganjam district may lead to the closure of Aska Cooperative Sugar Industries Limited (ACSIL).

The ACSIL is the oldest cooperative institution in the State and one of the oldest sugar mills on the eastern coast of India. According to the Ganjam District Sugarcane Growers’ Association (GDSGA) sugarcane cultivation is going down in the area due to lack of promotion. Narayan Jena, vice-president of the association, said this year at most 45,000 tons of sugarcane was expected to be procured from the Ganjam district for crushing in the ACSIL. It is the only sugar mill in the area. But during last year 70,000 tons of sugarcane had been procured by the sugar mill for processing. In 2005-06, the total amount of sugarcane provided by growers to the mill was 1,52,000 tons which had come down to around 1,00,000 tons the next year, said Mr Jena.

As per official records Ganjam district has a potential for 22,000 hectares of sugarcane cultivation. In 2007-08, the total area under sugarcane cultivation in the district was 7,000 acres and it got reduced to 4,000 acres in 2008-09.

As per the sugarcane growers farmers have started refraining from sugarcane cultivation as they do not get good prices for their produce. In Nayagarh district procurement price of sugarcane is around Rs. 1,800 per ton but in Ganjam district the procurement price is Rs. 1,200 per ton, alleged Mr Jena. The GDSGA has demanded that the ACSIL increase the procurement price of sugarcane to Rs. 2,200 per ton, but no decision has been taken yet for this hike by the sugar mill authorities. According to GDSGA members the increase in labour cost and hike in price of paddy is making farmers compare the profit from paddy cultivation. Many farmers have started using sugarcane fields for paddy cultivation. The sugarcane growers also alleged that mismanagement had reduced the sugarcane processing capacity of the sugar mill, which had started affecting the sugarcane cultivation in the district. They demanded a permanent administrative head for the sugar mill.

The GDSGA activists lamented that due to lack of promotion by the ACSIL and the government, sugarcane cultivation was going down in Ganjam district at a time when price of sugar is increasing in the retail market.

 

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Chandrasekhar, Nemani
Program Associate
Watershed Support Services and Activities Network (WASSAN)
H.No. 12-13-450, Street No.1, Tarnaka
Secunderabad - 500 017, Andhra Pradesh, India
Website: www.wassan.org, www.rainfedfarming.org