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Farmers in Indian State Shun Sugarcane

Source: Reuters
08/06/2009

New Delhi, June 8 - Lower sugarcane prices paid by sugar mills in India's southern state of Tamil Nadu have pushed farmers to shift to other crops, the Financial Express reported on Monday.

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Higher prices of turmeric and tapioca, a thickening agent in food, have helped farmers to shift from cane, the newspaper said, citing members of a farmers' body in the state.

Trade forecasts of a 45 percent drop in sugar output to 14.7 million tonnes in the crop year to September have led to a spurt in domestic sugar prices, making many believe farmers will plant more cane to capitalise on higher prices.



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