This news contained the efforts by the govenment to encourage the farmers to grow sugarcane. Government always decides Statutory Minimum Price (SMP) which is the minimum price sugar mill owners have to give to farmers while buying sugarcane from farmers.
This year govenment has decided this price as Rs. 107.76/quintal for (oct - sept '09). But to encourage farmers, govenrment has announced bonus on SMP. so now sugermills have to pay 170-175 rs. /quintal.
After reading this article i thought why this move has taken by government.. why sugercane is so impotant commodity.. so i came across following information about this commodity..
- India is the 2nd largest producer and consumer of Sugar.
- Sugar industry is India's 2nd largest Agro processing industry.
- Sugar industry comprices of 600 mills in private, public and corporate sector with capital employed totallyRs. 60,000 cr. and annual turnover of 40,000-50,000 cr.
- Sugar sector gives direct employement to 6 lakh persons and nearly 4.5 crore farmers.
- 5 million hectars of indian land is under cultivation of sugercane produces 300 million tones of sugarcane.
- 20-25% of output of sugarcane is utilized to produce traditional sweeteners like Gur and Khandsary. and rest for Sugar.
- This is the exceptional industry where government still exercises control.
1. In India the area under cultivation of sugarcane redused almost by 5 %. This has affected the production.
2. Sugarcane is currently used for food, feed, fuel and fertiliser. Due to rising prices of Oil, many countries including India are tending to use ethanol as fuel. So considerable part of sugarcane has diverted towards this fuel purpose.
3. Due to less production and increasing demand, from exporter, INDIA has become the importer. This has set global sugar markets on fire.
1 comments:
one more political point in sugarcane is, Sugarcane growing area is under the influence of Sugarplants mostly owned and invested by politicians. During the elections, these are the people who invested money for political party. Now as government is dominated by that party, now its payback time for them. They are making the money available in terms of pricehike.
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