No exclusive department for Sugarcane Development and Extension are functioning. The Sugarcane Commissionarates in the States looks after only Cane Regulatory Functions which works under the department of Industries. Thus there are no monitoring and extension services to take care incidents of Pests and deceases affecting Sugarcane Production and Productivity. Therefore it is suggested that State Governments be advised to create exclusive Sugarcane Development and Extension Department.

“Sustainable Development of Sugarcane Based Cropping System (SUBACS)” is not helpful to Sugarcane Farmers, since there is no department exclusively to look after activities under the above scheme. It is suggested that a separate wing be created with subject experts to look after developmental activities under the captioned scheme.

There is no coordination between State Government / State Agriculture Universities / other Research Institutions / Sugar Industry in the absence of mandatory   provisions for monitoring implementation of Sugarcane Development Programmes. Therefore it is suggested to evolve mandatory provisions fixing responsibility on each functionary for looking after Sugarcane Developmental Activity. The Tamilnadu State Government has evolved certain guidelines in the matter and fixed responsibility over various functionaries regarding Sugarcane Development, Research, New Technologies and Welfare Activities in the case of new Sugar mills to be coming up. The same may be replicated for other States and the Sugar mills already functioning.

Tissue Culture technique is better only for breeder seed production but not for Commercial Production either  Cost wise or  Productivity wise. Chip bud nursery and single bud nursery or single bud plantation with 5 or 6 or 9 feet wider spacing be practiced for higher productivity, better and low cost culture practices and introduction of mechanization.

The Sugarcane farmers are not aware about genetically modified seeds in respect of sugarcane plantations

The Contract farming resulted collection of Rs.500/- per acre and there is no impact on increasing the production and productivity of sugarcane; and (ii) in ensuring committed supply of cane to mills and prompt payment of prices to the farmers.

Consequent on un-remunerative SMP fixed by GOI for Sugarcane and better SMPs fixed for other Crops; Sugarcane farmers are switching over to other crops and it is estimated that 52% of the area under sugarcane is reduced during the last 3 years.

Consequent on regular arrivals of sugarcane the sugar mills resorted for early closer of the mills. The left out sugarcane was diverted for production of Jagary.

There is decline in sugar recovery in the case of cooperatives, Private or State Sector Mills due to non modernization of machinery. The Private or State Sector Mills, where modernization has been taken up, sugar recovery is satisfactory. It is suggested that innovative mechanism be evolved for arriving individual farmer sugar recovery.

Mandatory provisions be evolved for modernizing all Sugar Mills, to enable to improve recovery percentage.

The existing system of arriving sugar recovery is itself defective and against the interest of sugarcane farmers. Further mixing of imported raw sugar with sugarcane juice deteriorated the situation and there is no transparent mechanism for arriving sugar recovery.

Some of the State Governments are determining factory wise Additional Cane Price payable under Clause 5A of the Sugarcane (Control) Order, 1966 and also declaring State advisory price. However the A.P. Government has not determined factory wise additional cane price under clause 5A of the Sugarcane (Control) Order, 1966 and declaring State advisory price.

Inspite of the fact that Bhargava Committee has recommended for immediate announcement of “L” factor and effecting payment to sugarcane farmers the GOI failed to act on the recommendations. It is suggested to evolve mandatory provisions to effect payment of “L” Profits in a time bond programme with Penal Provisions for paying interest for the delayed period by Government.

The mandatory provision of paying Sugarcane price within 14 days from the date of supply of Cane be amended forth with.  In the case of Agricultural and Commodities instant payment is effected soon after delivery of produce.  Therefore it is suggested that in the case of sugarcane also agreed Cane price be paid to farmer soon after delivery of Cane, based on weighment slip issued by factory.

The molasses, bagasse and press-mud are not
by-products but they are co-products. Therefore prices of co-products should be taken into consideration while determining Cane price. There are established realization particulars of co-products and hence they should be taken into consideration while determining Cane price.

Established individual recovery systems are successfully functioning in various Countries. Mandatory provisions be evolved for adopting such systems and arrive individual Cane recovery.

The Government should evolve mandatory provisions for making Sugar Mills  into Sugar Complexes to enable the mills to function viably, economically and pay remunerative cane price to farmers.

Ethanol blending programme has not been implemented in Andhra Pradesh.

The Policy adopted by GOI either in Ethanol Production, Pricing and Blending is discouraging. The GOI should evolve simplified provisions which encourage Ethanol Production and Pricing. Blending of ethanol be made mandatory, gradually 5% to 15%.

When the Sugar Stocks, Domestic Prices were comfort  and International Prices were encouraging the GOI imposed ban on export of Sugar. This situation resulted acute crisis in Sugar Industry particularly Sugarcane farmers. Therefore it is suggested to evolve long term export policy by GOI to ensure regular supply to importers and create confidence among them.

Cane area reservation abolition / continuation / modification depends on the viability of Sugar Mills. As per experts reports and Sugar Industry 3,500 tonnes crushing per day (t.c.d) is Minimum viable norm. Depending on the above norm and Cane production, “Cane area reservation” should be fixed. It is not appropriate to adopt the norm based on total cultivable area in the village irrespective of Sugarcane cultivable area.

In view of our remarks at i) This is infructuous  and viability alone should be taken into consideration, subject to review from time to time.

Any speculation in the prices will work against the interest of sugar industry and cane growers.

The Policy of Government in pricing and distribution of molasses is working against the interest of cane growers due to imposition of restrictions on movement, sale, imposition of Central and State taxes etc. 

Detailed average Costs of Cultivation, depending on actual Production Costs incurred by Cane farmers of various States is worked out and herewith enclosed for ready reference. The wages of agricultural labour, inputs costs, harvest and transport charges are abnormally increased. The Costs of Cultivation works out to Rs.187/- per qt. As per recommendations of Prof. M.S. Swaminathan Minimum 50% Production Costs should be added and SMP fixed for 2010-2011 Sugar Season.

Renting out of land is prevalent in all the States. The current rent for Sugarcane will be on high side, since it is twelve months irrigated crop. In the case of other crops the rent is not so high, since duration of Crops happens to be 6 months. Rents prevailing for Sugarcane in various States are as follows: