SAP for private sugar mills: Jaya clarifies

Chief minister of Tamil Nadu J Jayalalithaa has issued a clarification that the State Advised Price (SAP) for private sugar mills has been on basis that it binds all sugar mills operated in the state irrespective of private or co-operative mills.

Taking note of the Supreme Court's decision that the state government can notify a SAP to be followed by all the sugar mills, Jayalalithaa announced on September 16, 2005 that the SAP will be Rs 1,014 per metric tonne linked to an average recovery of nine per cent.

Responding to the Opposition parties' queries on the state government fixing the SAP for private sugar mills, Jayalalithaa, in a press release, said that the SAP binds on all the mills operated in the state irrespective of private or co-operative.

The release added that the government of TamilNadu has fixed the SAP at Rs 1,014 per metric tonne as against the Rs 795 fixed by the Union Government.

A Tamil Nadu government press statement said that it was decided that the minimum price to be paid by any sugar mill should be Rs 1,014 per metric tonne even if the recovery is below an average of nine per cent.

It was also decided to provide an incentive of Rs 88 per metric tonne for every increase of one per cent over and above the average recovery of nine per cent.

The Supreme Court has stated in its order that there is no legal taboo against the state government playing a role in evolving an agreement between the cane growers and the sugar producers as to the price, without adopting any coercive methods, added Jayalalithaa.