Jaya hikes cane prices to Rs 2,100

CHENNAI: Chief Minister J Jayalalithaa on Thursday announced that the procurement price of sugarcane for the current sugar season (October 2011 to September 2012) will be hiked to Rs 2,100 per tonne, including Rs 100 towards transport charges. During the previous year, the procurement price of sugarcane stood at Rs 2,000 per tonne that included transport charges. Considering the welfare of sugarcane growers and with a view to fulfilling the electoral promise of the AIADMK, the price is being hiked to Rs 2,100 in the first phase.Besides, Jayalalithaa also announced that production of ethanol would be resumed in private and cooperative sugar mills. As a result of this move, sugar mills can extend enhanced price of sugarcane. The move was initiated by the previous AIADMK government in 2002 and 185 lakh litres of ethanol was produced and given to oil companies. However, the DMK government stopped ethanol production in 2006-end and due to it, a number of sugar mills were facing hardship.Sugarcane plantation in TN had increased to 3.5 lakh hectares, compared to 3.1 lakh hectares last year. During the current year, cane production is likely to go up to 400 lakh tonne. Last year, the production stood at 342.5 lakh tonnes. The CM has already announced many measures for increasing the overall production of farm products. Recently, she announced that a new scheme — Sustained Modern Sugarcane Production (SMSP) — for increasing sugarcane production would be implemented and allocated Rs 12.93 crore towards it. However, the Tamil Nadu Vivasayigal Sangam has termed the government’s decision “disappointing” and demanded that the procurement price be increased to Rs 3,000.