Tapioca crop fetches better price in Chennai market
Tapioca crop is cultivated on nearly 60,000 acres in East Godavari district and there are 20 sago mills running in Peddapuram, Samalkot and Jaggampet mandals. (Photo: DC)
Kakinada: Farmers cultivating tapioca crop are hoping that Chennai traders will fetch them a higher price than that in the local market. The tapioca farmers in East Godavari district are waiting for Chennai traders to enter the market to dispose of their crop or sell in the open market. But, they are not willing to sell it to sago millers, as prices offered by the millers are much less and not remunerative.
Last year, the traders from Chennai purchased the bulk of the crop at Rs 1,500 per bag of 225 kg (putti) in cash and carry method whereas the local sago millers were able to offer only Rs 1,000 or so per bag. Also they are unable to make one time payment and they are purchasing the crop on credit. The farmers also go for alternative market methods like selling the dry pieces of tapioca for a better price.
“The farmers are showing interest in selling their crop to Chennai traders as they offer better prices than local millers’’ said Putta Somanna Chowdary, president of the Tapioca Farmers Association. He said that the farmers invest Rs 15,000 to Rs 20,000 per acre, but, they are unable to recover even the investment charges, if they sell the crop to local sago mills.
“We can’t offer more than Rs 1,000 like last year as the sago mills are not able to purchase at higher prices,” said, Mutyala Rajabbai, president of the Sago Food Processing Cluster Industries Welfare Association. He said that the sago mills are facing crisis.
The Association secretary N. Ramakrishna said that the Chennai traders can offer better prices than the state’s sago trade as Tamil Nadu government encourage them in Chennai. He said that the state government impose 5 per cent tax on sago products and Rs 7 per unit of current whereas the Tamil Nadu government collects only 1 per cent tax and Rs 2 per unit for current and also Tamil Nadu traders are in forefront in using modern technology. However, the association president M.Venkata Rao said that the Chennai traders may not come this year as the crop in Tamil Nadu is good at present. He said that for the last two years the farmers and trade in Tamil Nadu face adverse climatic conditions.
Meanwhile, Tapioca farmers and sago millers are demanding bringing back of Tapioca Research Institute to the district.
The institute used to function at Peddapuram until three years back as a part of Acharya NG Ranga Agricultural University. But, after setting up of Dr. YSR Horticulture University at Venkatramannagudem in West Godavari district, the Tapioca Research Institute was shifted to the Horticulture University premises.
“There is a need to bring back the research institute to Peddapuram Constituency where tapioca crop is being cultivated in huge extent and sago mills are established. At present the tapioca crop duration is eight months. There is a need to decrease the duration from 8 to 6 months. Bringing back the institute here will definitely aid this effort,” said the president Tapioca Farmers Association Putta Somanna Chowdary.
( Source : dc correspondent )
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