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Sugar mills should ensure ethanol to oil companies: Pawar | Union Agriculture and Food Minister Sharad Pawar on Tuesday appealed to the sugar mills to ensure continuous
and adequate supplies of ethanol to the Oil Marketing Companies (OMCs) not only to make ethanol blending programme a success in India , but also to ensure adequate
price for ethanol as well as sugar in all the years. Addressing the 75th Annual
General Meeting of Indian Sugar Mills Association (ISMA) in the national capital,
Pawar informed that a broad agreement has emerged on the supply of ethanol and
its pricing which will be announced very soon. He said that only after a successful
implementation of five percent ethanol blending programme, that the Government
can have the confidence to embark upon a higher percentage of ethanol blending,
which may go upto ten percent. Pawar also said that the Government has already
fixed the fair and remunerative price (FRP) of sugarcane for 2009-10 sugar season
at Rs.129.84 per quintal, which is more than 50 percent higher than the cost of
production and transportation incurred, on an average, by the sugarcane farmers
in India . The FRP is a benchmark price fixed by the Central Government and sugar
factories cannot pay a price for sugarcane below this FRP. He urged the sugar
factories to consider paying a reasonably good price to farmers for sugarcane,
which should be about 70 percent of the price of sugar received by the mills in
view of the current prevailing sugar prices. Referring to the criticism of the
Central Government for having not been able to correctly estimate the production
figures for 2008-09 sugar season, the Minister pointed out that the estimation
of sugar production is dependent on several factors, including the estimates made
by the concerned State Governments as well as the sugar industry itself. |
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