In a bid to protect the sugarcane farmers from vagaries of prices, the Andhra Pradesh government is planning to announce ?state advisory price? (SAP) for sugarcane through a government order.
After a marathon meetings between sugar mill managements and officials, Chief Minister YS Rajasekhara Reddy, it is reliably learnt, has asked the officials to take stern action against those who refuse to fall in line. The state government is asking the sugar mills to pay at least Rs 1,050 per tonne.
Industry sources said that only about seven mills from Telangana region are resisting paying the remunerative price for the sugarcane as last year. ?We (the government) had asked the managements to pay at least Rs 1,050 per tonne, which is less than last year price,? officials said.
Though the sugar mills from Rayalaseema and coastal areas have agreed to pay as asked by the government, the mills from Telangana region have refused to budge to the official line. Out of 38 sugar mills in the state – cooperative, joint sector and private – about 11 mills are from Telangana region. These mills have paid an average price of Rs 1,170 per tonne during the last crushing period.
The industry sources point out that legally the state has no role in fixing the sale price for sugarcane. It can do so, only after amending the AP Sugarcane Regulation (Sale & Purchase) Act, they added. However, officials argue that Andhra Pradesh can follow Uttar Pradesh, which is fixing the sugarcane sale price in its state.
Meanwhile, the other sugar mills, who have agreed to pay on par with the last year price, are now trying to mediate with the Telangana mills. ?We do not want the government to amend the legislation, which may create further problems to the industry,? industry sources said.
They are hopeful that even their Telangana counterparts will agree to buy at last year prices.