In a good news for farmers in Orissa's Ganjam district, the Aska Cooperative Sugar Industry Ltd has decided to purchase sugarcane at a rate of Rs 2000 per tonne, which is about Rs 300 more than last year.
"Considering all factors we have decided to fix the sugarcane price at Rs 2000 per tonne, the highest ever amount this time," the Chairman of the managing committee of the sugar body and District Collector V K Pandian said.
The sugarcane price was fixed at a meeting after discussion with the representatives of the Ganjam district sugarcane growers association.
The factory authorities have also agreed to bear the cost in transporting sugarcane beyond 10 kms distance from the factory. Within the 10-km radius, the farmers, however, would have to foot the transportation bill.
"We have offered the highest price on the sugarcane this time to motivate more and more farmers to cultivate the crop, which will be remunerative to growers as well as viable for the factory to run smoothly," the collector said.
Last time, the oldest sugar factory in the state crushed only 43,000 tonnes of sugarcane.
But this time, the factory has decided to crush around 75,000 tonnes and to reserve around 7,000 tonnes for the seed.
The sugarcane growers association had demanded the price to be fixed at Rs 2,500 per ton this time, but accepted the decision of authorities, said Secretary of the association Samir Pradhan.