Cane producers may have earned Rs 9k cr in 10 years if the revenue sharing formula is adopted: head of CACP

New Delhi, December 5 () Sugarcane farmers would have earned an additional income of Rs 8,000-9,000 in the last 10 years if state governments had adopted the income sharing formula recommended by the C panel Rangarajan for the sugar sector, agricultural price advisory body CACP president Vijay Paul Sharma said Thursday.

Addressing the 85th annual general meeting (AGM) of the Indian Sugar Mill Association (ISMA), Sharma said it is necessary to make the industry self-sustaining, so it should be diversified to non-sugar companies.

Affirming that there is a need to move away from distorted policies, Sharma said: We need to look at the long-term perspective and move towards a revenue-sharing formula rather than the current fair and remunerative price (FRP) being set by the Center for sugar cane .

He also said that the sugarcane would have earned Rs 8,000 to Rs 9,000 additional crore in the last 10 years if state governments had adopted the revenue sharing formula.

In 2012, the C Rangarajan Committee had recommended that the income/value created in the sugarcane value chain be shared between farmers and millers in a fair and equitable manner. The Center had considered the recommendation, but left it to state governments for adoption and implementation.

Underlining the need to diversify the sugar industry, the head of the Committee on Agricultural Costs and Prices (CACP) said that the industry should be dynamic and less dependent on the government.

The industry cannot survive if factories operate for 4-5 months during the crushing season and remain inactive for the rest of the year, he said and asked factories to look for ways to diversify and ensure that they operate throughout the year.

As sugar consumption is not going to increase and production fluctuation continues, the industry should focus on ethanol and cogeneration businesses, he added.

The head of the CACP also asked the sugar mills to establish more links with farmers and encourage them to switch to farm mechanization to reduce the cost of labor, improve soil fertility through the pattern of multiple crops and promote micro irrigation.

Addressing the General Shareholders' Meeting, the president of ISMA, Rohit Pawar, called on the government to adopt the revenue sharing formula to determine the price of sugarcane and also create a Fund for the Welfare of the Reed to pay the gap between the price of the reed according to the income sharing formula and the FRP that the government wants to pay the farmers.

In India, steel mills pay almost 90 percent of their income as a cane price and this problem needs to be tackled to remain competitive in the global market, he added.

On ethanol, he said that the long-term policy on ethanol should be revised as it is difficult for the industry to compromise the supply of ethanol for more than 12 months because production depends directly on sugarcane production, which again depends of rain and water availability. and the weather On export, Pawar said the government should penalize if the factories do not meet the quota set by the government. LUX HRS