The Govt. of India has announced new FRP for Sugar Season 2011-12. The New FRP will Rs.145/- Per Qntl. as conmpared to Rs. 139/- Per Qntl. for Basic sugar recovery of 9.5% all over india. The Hike in FRP of sugarcane has created bright picture of cane growers. The Sugar Cane Production will move up in future considering the more & more farmer will plant sugarcane to captured increased FRP. The Increased FRP will disturb the picture for Sugar Mills. The Sugar Mills Associations especially in Tamilnadu & UP are seems to be against FRP Hike. The Picture in Maharashtra is quite different as compared to UP & TN, The Avg. Recovery factor of around 11% & Increased sugarcane plantation is primary reason for the same. The Recovery for the TN & UP is Averaging around 7-8%. Instead of rising FRP, The Sugarcane Growers are not seems to plant more sugarcane in TN & UP.
We will see the Price war between Cane Farmers & Sugar Mills in 2011-12 especially in TN & UP. In Maharashtra story will be different as The Cane Growers are geting comfortable prices for thier output.
We will see the Price war between Cane Farmers & Sugar Mills in 2011-12 especially in TN & UP. In Maharashtra story will be different as The Cane Growers are geting comfortable prices for thier output.
