Tamil Nadu to switch to revenue sharing formula to fix sugarcane price

The state has decided to switch over to the revenue sharing price fixation model from the current season

After Maharashtra and Karnataka, Tamil Nadu has decided to switch to the revenue sharing formula to fix sugarcane price. The Rangarajan panel had recommended that sugarcane price be determined at 75 per cent of the revenue realisation from sugar and some by-products. Industry representatives believe the major relief would be that the price won’t be based on political compulsion.
 
In his Budget speech on Thursday, Tamil Nadu Deputy Chief Minister and Finance Minister O Paneerselvam said the sugar industry is going through an extended phase of distress and "this has, in turn, affected timely payments to farmers". Adding, “The