Ad Here  
Pharma – overdose of copying EVM is tamper-proof Plummeting profits of PSBs Building loyalty through the stomach Convulsions in The Hindu More Shakthi to Das’ elbow Auto components surge… Quality silica from Neyveli For whom the MIDS bell tolls? The ‘Jayanthi Tax.’ Towards speedy justice Godspeed, Chief Minister JJ Solar, solar everywhere … TN – agglomerate land holdings without alienating ownership Return to king coal for urea... Telangana in top gear… Revving up the manufacturing sector Roaring Ro-Ro facility When Ratan Tata visited SRM Mu Sigma – is no more When the President was rendered homeless… Liberal imports idling indigenous capacities The star of Spencers is no more The brown list of Venkitaramanan Tough task taking states together Adapt Vajpayee dinner diplomacy A rich pool of talent not utilised…. F C Kohli - his concerns all embracing Put expensive assets created to use... Why this malaise in medical education? Lesson from Chandrababu Naidu Maximising the micro pricing … Funding the un-funded Vibrant Gujarat An informal presentation - analytical, forward locking... The rise and rise of KCP Nuclear power at the nucleus Why land prices zoom in TN? Another Indian music maestro at the UN Should we change the official year? New IT products of Ramco in the pipeline… When online building permits work…. Contrarian cousins GNS - 100: our first subscriber Shanti and Sadhana through Music PPP mode for upgrading Corporation Hospitals Naidu will soon build a new Hyderabad S Ramanathan – a versatile musician, musicologist Muffled voices for merit… Wise Presidents Insurance companies bleeding, yet no decision on increasing FDI limit! No mega rail project for Tamil Nadu Rs.1600 crore paper board plant of TNPL Whistle-Stop Tour of Raghuram Rajan The few handicaps... Quality education through the PPP mode A proud Madrasi Dr C Rangarajan returns to Chennai to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Of course, Gujarat is vibrant Bihar – Nitish Kumar adopts the Lalu model A Grand Finale for SN’s MS centenary at the US… Tribute Engineering seats go abegging Lalu’s envy, India’s pride Fall in crude prices help in oil sector reform L&T: focus on infrastructure and more infrastructure… Editor's Says Valli, they are more marginalised S V Raju – a ‘good’ true liberal Limit foreign borrowings to hi-tech, export potential projects... Sweeter prospects for sugar Delhi returns to BJP Delhi is distant Air Asia India will set new benchmarks for budget travel Which side are you, Montek? The Jan Dhan bonanza A C Muthiah – his munificent bequeaths to science Small units prefers to remain small... MHC should not return to its old indisciplined ways The sea- saw battle continues... The Swadeshi Trump Build close rapport with business leaders Banning booze... Readers' Mail L&T- the specialty of special purpose vehicles Inflation: are we emulating Argentina and Brazil? Recognition to role of NBFCs.... Scientists urged to take up farmer-oriented research Tribute – M V Murugappan Revive development banks... Medical costs hit the roof... Where is Rajaji? Parliament in paralysis... Mersal magnified Kulandai was a giant Preserving for the future Land reclamation from sea appears cheaper! An inexplicable neglect Modi and the lady How Air-India loses customs... Silver Years of Madras Musings Secularism and anti-Hinduism Discoms deserve better… Reliance’s TV – 18 ready to launch Tamil News Channel CSR and CMI: promise of another Srinivasan Ramanujan... The ‘Ayyo-yes’ is no more Gay abandon in pricing Align crops to agro climate endowments… Road development slows down Marketing expert Balagopal is no more TELANGANA at last…BUT Cleaning Ganga – relocate tanneries and install electric crematoria CII projects higher growth… Adharma of opposition politics The Ports’ Pasha expands into Tamil Nadu B H Kothari - a tribute A think tank for Chennai Protest masters... Airlines in India: cost and space Robber barons everywhere Not just in-laws (and outlaws); they’ve renowned academics at the helm! Fuel for thought IAS invades NDDB... He continues the focus on social amelioration PC’s preference for professionals Colour-Chem’s colourful KRVS West Bengal: mindless malignancy Padma Bhushan for A Ramakrishna The why of tax incentives Editor's Notes Computation of GDP – conundrums continue Poor representation for Kerala and TN in Cabinet A Grand Finale for SN’s MS centenary at the US… Alexa – Talking Wikipedia Tribute – Manikam Ramaswami …and of a popular trade leader Diamond jubilee of Egmore Samskrt School Waning interest in public discussions… Kudos to NDTV... Russi Mody – a tribute Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated The nuclear option This scant respect for Law China invests in India He saved millions from starvation... Shaming of Tamils by Tamil farmers at Delhi Sweet news for TN sugar mills ONGC at KG Basin All eyes on Sankara Nethralaya Infrastructure funding – lessons learnt An enemy’s enemy is a friend Noble nonagenarians... No engine for this car GM Technology at last! Poor quality of university VCs Welcome thrust on trade in Modi’s foreign visits... When nations steal growth from one another… Odisha: spectacular win by Naveen Patnaik Welcome GST A friendly business group Cutting the nose to spite the face Tatas moving out of urea production... Measuring roof tops in terms of KW/MW Welcome changes that testify to Jayalalithaa’s return to health Online not in line with brick and mortar businesses... R Sridhar steps down as CEO of Shriram Capital Tatas moving out of urea production... A glass full of corruption Boy, can you beat these? Things happen by accident and not by design... Shale gas and its shallow future Fortune for Indian Airlines More tributes to GR Demise of a media baron... For whom the bell tolls? Like Hinduism: many paths to reach God... Breaththrough in malaria control The rise and fall of Annamalai University Five star activism stalls development activity Make standards certification mandatory... Sri Lanka votes for change Strengthen the base... Moily’s bold thrust Where a state respects its litterateurs… A professional at the helm of IRDA... The Gulf aviation boom A welcome initiative by the judiciary TN-leverage strength of BHEL, NLC... Modi storms Silicon Valley SoA @ 80 CIPET hqrs to stay at Guindy – for the present? When small is no larger beautiful.. The balancing act No Maha Koottani in TN... CRS, a jewel among managers, is no more. TGS- The king storyteller Permanent secretariat for TN GIM Welcome focus on core competence There was flood of milk. Reason: no milk commissioner! More Shakti to resource mobilisation... Wanted: a second airport for Chennai When TN politicians can emulate Kerala's Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai IPL - no surprise this scam Paytm karo... Don’t seem to feel the pulse… WTO Meet: resolved to meet again Kinetic Karnataka Cement prices continue to rise… The power-full Hindujas Shipping woes of Chennai companies Rahman at CIC Streamlining mandatory third party cover Bihar elections - the Rajaji formula worked Solar thermal shines… TIAM turns a full cycle London, London Narayan Tax agriculture A yen for wastage… More heat than light Fortune 500 review Excel Generators provide the vital back-up Tihar, Puzhal not different from Parappana Agrahara Gas is the way forward TN accounts for the largest recruits by the IT sector Delhi is distant… Haul over the coal IPL type auction for VCs? Come elections, come advertisements... Focus on quality of power - its only around 170-180V Polls and promises Tribute – UCAL Selvan… Increasing non co-operation of state leaders Eternal support for capitalisation of PS banks A more liberated TN… Intellectual of rare qualities Multi-faceted Venkat Music happens Making ‘my Amaravati’... Delhi Chalo... Remembering Indira Sivasailam... EEC at the National Media Centre Naidu’s return augurs well for Seemandhra
Sweet news for TN sugar mills

After the dismal performance of last year, sugar mills hope to have profitable operations in the current year. Such outcome is the result of much better price of sugar, presently ruling around Rs 45 a kg against less than Rs 30 last year. 

Five years ago Tamil Nadu produced 25.5 lakh tonnes of sugar. It declined steeply in the subsequent years. Production in the current season is expected to be around 11 lakh tonnes. But with severe drought affecting all districts of the state, production is projected to fall to just 9 lakh tonnes in the next season, said N Ramanathan, Managing Director, Ponni Sugars. 

Widespread drought will also affect production in Maharashtra that has been the largest producer of sugar. However, there is the hope of relief coming from UP. Ramanathan pointed to a new variety of cane developed by the Sugarcane Research Institute, Coimbatore, helping UP cane growers to increase sugarcane yields substantially – from an average of 22 tonnes per acre to 32 tonnes per acre; there is the additional prospect of higher recovery from 9.5 per cent to 10.7 per cent. These quantum jumps are expected to sustain over the next decade and more and augur well for maintaining high production of sugarcane and sugar in the years ahead. In the current season, UP is expected to produce 85 lakh tonnes and Maharashtra just around half at 42 lakh tonnes. ISMA estimates total production for the year at 213 lakh tonnes.

Sugar industry continues to suffer from political interference and hefty lobbying by TN farmers. States continue to recommend prices for  cane much higher than the price prescribed by the Commission for Agriculture Costs and Prices (CACP). Mill owners point to the uneconomic nature of such pricing that has resulted in mounting arrears on cane purchased. Sugar mills continue to pay on CACP prices resisting the increased price advised by the states. This resistance has resulted in mounting arrears estimated around Rs 21,000 crore at the all India level; UP alone is expected to account for Rs 14,000 crore of this. Due to the low prices of sugar last year, Tamil Nadu sugar mills suffered a loss amounting to Rs 1000 crore as also dues to cane farmers of Rs 1200 crore, said Ramanathan.

One notices wild claims of cane farmers and political leaders eager to ensure support from this vote bank. The latter have been suggesting a minimum cane price of Rs 5000 per tonne. Farmer leader Ayyakannu heading the bizarre agitation in Delhi for a month, graciously suggested: “if we are paid Rs 8000 per tonne of sugarcane we won’t look for subsidies, reliefs and other support by the government.”

At this price, as per Dr. Rangarajan committee formula, the retail price of sugar in Tamil Nadu will be around Rs 125 per kg, more than thrice the present level! Cane farmers number a mere half of one per cent of the state’s population of around 725 lakh. Still, political leaders, a good number of them land owners, lend their blind support to the farm lobby. In the licence-permit-quota raj, chief ministers used their prerogative and power to issue a licence for sugar mill to the chosen few. Remember MGR handing these to G Varadaraj and P G Periasamy, purely in appreciation of his friendship with these?

Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236