just read this article in mumbai mirror... wonder what prompt such decisions.. (ofcourse vote bank), but these same people will someday go to one village where all farmers depend upon Sugarcane, which they sell to Mills for making sugar and will promise them that they will get Rs. 2000/- ton of cane they sell to mills. Both sides they promise which can not be delivered... So this is politics....
Now lets look at economics...
In Maharashtra 100kg of cane can produce 12kg of sugar (world's highest recovery). So now mill purchases 10000 kgs of cane from farmer and pays him Rs 20,000 (10mts X rs. 2000) now mill crushes this and produces 1200kgs of Sugar (with 12% recovery). It sells sugar (as highlighted in paper cut) @ Rs. 9/ kg so mill will recover Rs. 10800/- by selling the same. So loss to mill will be Rs . 9200 plus all other expenses.
In both scenario both buyer n seller are looser.
I feel the focus must be on increasing yield/ area/ educating farmers/ making sustainable policies and not on playing such petty politics.
