Chennai, Nov 8 (IANS) Tamil Nadu Agriculture Minister Veerapandi S. Arumugam Sunday said the state government does not agree with the central government’s new sugarcane pricing policy.
“The fact that the DMK government has not agreed with Free and Renumerative Price (FRP) means the state government does not subscribe to the new pricing policy of the centre. The state’s views on FRP will be communicated to the centre,” Arumugam said, according to a statement issued here.

He was responding to the Friday statement of the Leader of the Opposition J.Jayalalithaa demanding the state government’s clarification on its stand on FRP.

The central government, in its Oct 22 ordinance, had introduced the new pricing policy for sugarcane and said if the state advised price (SAP) is higher than the FRP, the state governments will have to pay the excess amount.

The central government had fixed a FRP of Rs.1,298.40 per tonne linked to 9.5 percent recovery and Rs.13.70 for additional 0.1 percent recovery.

According to Arumugam, the state government had announced a price of around Rs.1,550 per tonne, including cane transport cost before the central government announced FRP.

He said the some of the cooperative sugar mills in the state have been paying upwards of Rs.1,640 per tonne of sugar cane. private and public sector sugar mills in the state would also pay a price as advised by the state, he added.