Feedback
Make this your Home
Search: Messages    Stock    Boarder
 
Post a Message | Explore Forums  |  Browse Stock Messages  |  Hot Discussions  | Top rated Messages  | Top Boarders
Moneycontrol.com >> Messageboard >> Reply to the Message
   You are here :     Moneycontrol     MMB   Reply to the Message
  Here you can reply to the message shown by typing in the input box.
  Shree Renuka   (Stocks)  
et
Govt may dilute states’ control over sugar prices



Prabha Jagannathan NEW DELHI



A DAY after the Centre came out with an ordinance amending the Essential Commodities Act, which replaced the sugarcane SMP with a “fair and remunerative price” from the current sugar season (October 2009-September 2010), process has been set in motion for the second part of the exercise. It involves an amendment of the Sugarcane Control Order, 1966, to dilute the right of the state governments to announce the State Advised Price (SAP) that is usually much higher than the Centre’s SMP for sugarcane. A notification in this regard is in the offing.
The Centre cannot take away the right of the states to announce SAP, as reinforced by the apex court in 2004 in a case involving Uttar Pradesh. So, the objective of the relevant amendments to the Sugarcane Control Order, 1966 is that in the event the sugarcane support price announced by state governments is higher than the fair and remunerative price, the burden falls on the states themselves.
In effect, it could mean that sugar millers will pay SAP in the five SAP states and the difference between the SAP and the fair and remunerative price will be reimbursed to them later. However, according to an industry official, this would not be feasible.
Meanwhile, Uttar Pradesh, the country’s second biggest sugarcane producer, raised the state-fixed minimum price paid to farmers for sugarcane by 18% to Rs 165 per quintal, compared to Rs 140 per quintal last year. The state government has also increased SAP for early maturing varieties of cane to Rs 170 from Rs 145, and prices for inferior grades to Rs 162.50 from Rs 137.50. The increase of Rs 25 is the highest annual increase by the state.
The higher minimum price will provide an additional Rs 2,100 crore to farmers in the state.











  
Posted By     abhaytiw

Reply to the Message
Message Type :      Message     Query     Greviance
characters left                       
  MMB code of conduct
  We request you to follow ethical standards in your posts.
  Please ensure that your post
 
•  Is not libelous. Please differentiate between your feelings, judgments and generalization . In case you want to make a serious allegation do substantiate it [about any person/ company/ entity] .
•  Please do not post confidential, classified insider information about any company or entity
•  Do not make rude or insensitive remarks against a community, race or caste, religion or gender
As you know one may face legal action by revealing insider information or making unsubstantiated, libelous allegations against a company/ entity . Should there be a court order or legal action against any post violating the law of land, we will comply with the court judgment which includes, deleting your message, banning you from MMB, sharing your IP address to the investigating authorities etc [as specified in the law/Order].

-MMB Moderator

Pachai Nirame
Oru Mugamo
Vaseegara
Addungada Ennai Suthi
Kaadal Onru Allava
Oru Naalo Oru
Mukundha Mukundha
more tamil songs

What the stars foretell

Bejan Daruwala

Ganeshaspeaks: Market prediction for Nov 26

View all astrologers

India over 10 years

See whats improved/ worsended

FII Investments »
FDI »
Exports »
Imports »
GNP »
See all »

Poll 

Would you buy sugar after resolution on cane price?

Yes No
Can't Say  
To SMS your queries to us Type YS < Your query > SMS to 51818
Stocks to be discussed next:
|  ABG Shipyard |  Bajaj Hindustan |  Jaiprakash Asso |  JSW Steel |  Suzlon Energy |  Patni Computer |  Unitech 
 view all queries »