Sugarcane Growers Want Part of Energy Revenues

Producers of sugarcane in El Salvador have proposed amending the regulations so that they can receive part of the revenue generated by the mills from the sale of surplus energy produced.

Thursday, August 6, 2015

The union of producers stated that the practice of producers receiving revenues generated by the mills from energy production using sugarcane is very common in other countries. The union of Salvadoran sugarcane producers proposed reforming the legislation to incorporate this condition, but industrialists rejected the proposal and consider that the income could be shared once it has recovered the investment required to produce clean energy.

The reforms would have to be made to the law of production, industrialization and commercialization of the sugar industry in El Salvador, in force since 2001, which organises the way both mills and producers earnings per activity are divided. "

Mario Salaverría, president of the Sugar Association of El Salvador (AESA), "... emphasized that the mills invest heavily in acquiring and installing equipment for the transformation of biomass. 'At the end you can discuss it, but first we must recover what has been invested, because (investments) develop in about seven or 10 years time.' "

Joel Bonilla, president of ASPROCAÑA told Laprensagrafica.com that "... the main idea is to distribute the proceeds from the sale of other products such as alcohol and cachaça (a type of liquor)."

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