Deshmukh caps sugarcane price at Rs 850 per tonne

Sugar co-operatives not availing Nabard assistance freed from this directive

Chief minister Vilasrao Deshmukh today made it clear that sugar co-operatives availing of the financial package from the National Bank for Agriculture and Rural Development (Nabard) would not be allowed to offer more than Rs 850 per tonne to sugarcane producers.

However, a final decision on this issue would taken in a cabinet meeting schedule on November 30, he added.

This decision was taken today at a meeting of senior ministers which included water resources minister Ajit Pawar, co-operative minister Patangrao Kadam and agricultural minister Balasaheb Thorat.

Speaking to media persons after the meeting, Deshmukh said, "Sugar co-operatives not taking financial help from Nabard are free to decide the price,"

This decision has taken into consideration the already overstretched financial condition of sugar co-operatives. Any further financial burden will sound a deathknell for sugar co-operatives and the ultimate losers will be farmers, he claimed.

In the meanwhile, farmers' organisations have launched agitation in the state demanding Rs 1,500 per tonne for sugarcane. Their agitation has already delayed the crushing work at many sugar co-operatives by almost a month.

Out of 120-odd working sugar co-operatives in the state, 64 have opted for assistance under the Nabard package and their proposal has been cleared by the state government and 20 more such proposals are under consideration.