Tamil Nadu govt fixes Rs 2,650 as cane procurement price

CHENNAI: The Tamil Nadu government today fixed Rs 2,650 per tonne as the procurement price for sugarcane and Rs 450 as the advisory price for cane for 2014-15 crushing season.

While the Centre fixes the Fair and Remunerative Price for sugarcane, states announce their own advisory price, known as State Advised Price, during the crushing season.

"The State Advised Price for cane for 2014-15 season will Rs 450 and it includes transport expense of Rs 100," Chief Minister O Panneerselvam was quoted as saying in an official release.

The Centre has fixed Rs 2,200 as FRP and along with the SAP of Rs 450, the procurement price has been fixed at Rs 2,650, the release added.

"Karnataka and Maharashtra have decided to first give the FRP announced by the Centre and then fix price according to the revenue sharing formula of Rangarajan Committee," Panneerselvam said.

"Tamil Nadu government has, however, decided to announce SAP of Rs 450, inclusive of Rs 100 for transportation expense over and above the FRP of Rs 2,200, considering the welfare of cane farmers," he added