Chennai, Jan 6 (AHN) Red sugarcane farmers in Tamil Nadu's Dharmapuri district have voiced strong discontent over the procurement price offered by the Cooperative Department for sugarcane supplied as part of the state government's Pongal gift hampers.

Although the government announced a rate of Rs 38 per cane, farmers allege that after deductions for transportation, handling, and labour, they receive only about Rs 25 per cane, which they say is financially unsustainable.

The Cooperative Department is procuring red sugarcane in Dharmapuri to ensure that all ration cardholders receive cane along with the Pongal hamper.

This year, around 4.75 lakh cardholders in the district are expected to benefit. To meet the demand, sugarcane is being sourced from several parts of Dharmapuri and neighbouring Salem, involving more than 67 farmers.

A farmer from Keelanur village said that the initially announced price appeared fair.

"We were told that the rate would be Rs 38 per cane, which sounded reasonable as the open market price was also around Rs 38 to Rs 40. However, we later realised that the announced amount includes transportation and labour charges. After all deductions, we are left with only about ₹25 per cane, which barely covers cultivation costs," he said, urging the government to revise the pricing structure.

Another farmer from Kannipatti village pointed out that Pongal is usually a period of high demand for red sugarcane, when farmers expect better returns.

"Instead of benefiting from the seasonal demand, we are facing losses. Because the Cooperative Department is paying only Rs 25 per cane, private traders have also reduced their prices to Rs 26–Rs 28. If the government fixes at least Rs 30 per cane and allows farmers to supply directly to ration shops, we can manage transportation ourselves and avoid losses," he said.

Responding to the complaints, a senior official from the Cooperative Department said there was confusion over the announced rate.

"The Rs 38 per cane declared by the government is an inclusive amount, covering labour charges, handling fees, transportation, storage, and quality verification. Procurement prices may vary from district to district depending on availability and logistics," the official said.

He explained that sugarcane is transported from fields to cooperative godowns and then distributed in batches to nearly 1,100 ration shops.

Since many ration shops lack adequate storage space, multiple trips are required, adding to costs.

The official also noted that procurement has expanded this year, with sugarcane being sourced from 67 farmers across Dharmapuri and Salem, compared to 54 farmers last year.