TN CM announces SAP for sugarcane at Rs 1,025 per tonne

Chennai, Nov 28 (UNI) Tamil Nadu Chief Minister M Karunanidhi today announced State Advised Price (SAP) for Sugarcane at Rs 1,025 (per tonne), linked to nine per cent recovery for the year 2006-07.

An official statement here said the state government has come out with the SAP after the Centre announced the Statutory Minimum Price (SMP) at Rs 802.50 per tonne of cane, linked to nine per cent recovery.

Mr Karunanidhi also announced an incentive of Rs nine per tonne for every 0.1 per cent increase in recovery above nine per cent and said the SAP would be given from retrospective effect to benefit farmers from whom cane had already been procured during this season, the statement said.

For the year 2005-06, the Centre had announced the SMP at Rs 795 per tonne of cane, linked to nine per cent recovery and the state had fixed the SAP at Rs 1,014 with an incentive of Rs 8.80 per tonne for every 0.1 per cent increase in recovery.

During 2005-06 Main season (October 2005 to May 2006), 164.50 lakh tonnes of cane was crushed and 15.55 lakh tonnes of sugar was produced. There are 38 sugar mills in the state, of which 35 functioned last year.

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