Power and Pawars: Behind coin-toss electoral showdown in sugarland

Pune's sugar mills shape local politics and elections; a number of prominent candidates in the region are tied to such factories. Prachi Pisal reports from the ground

Pune district, home to over 21 sugar factories — 12 of which are cooperatives — stands as Maharashtra’s third-largest sugar producer, contributing 12.17 per cent to the state’s total output, according to the Vasantdada Sugar Institute. Once envisioned as an engine for rural empowerment, these influential sugar industries have now become a potent political tool, shaping electoral strategies and vote banks.  

“Operating sugar factories is beneficial,” says Ajit, a farmer and factory worker. “Workers and farmers are financially tied to the mills, which also employ people across constituencies.” These intricate connections between economics and politics are sharply visible in Baramati, a hotspot for the upcoming Maharashtra assembly elections. 

Here, Nationalist Congress Party (NCP) leader Ajit Pawar, contesting under the Bharatiya Janata Party (BJP)-led Mahayuti banner, is pitted against his nephew Yugendra Pawar, a Maha Vikas Aghadi (MVA) candidate backed by Sharad Pawar. The Pawars' influence over the region’s sugar industry is indisputable. 

The Pawars dominate the local sugar industry: Ajit Pawar’s career began with his 1982 election to a sugar factory board, while Sharad Pawar’s relatives — Rajendra and Rohit Pawar — run Baramati Agro Limited, a prominent sugar mill.  According to a report by Maharashtra Times, the companies under Ajit Pawar have bought several sugar factories. 

“It’s everything Pawar here in Baramati. If not this Pawar, then that Pawar. There’s only one point of discussion here in the upcoming elections -- Pawar versus Pawar,” quips a local resident, gesturing to the region’s relative prosperity: Robust industries, thriving mills, and efficient irrigation systems. But not all mills share in the success. Many struggle under the weight of financial losses, leading to sales to private operators.  

“These mills and politics are intertwined,” says Rajendra Mohite, a factory worker. “Some politicians’ factories offer high rates to bolster their agenda but neglect sustainable operations. Those run like businesses do well; those driven by political motives struggle.” Current rates offered by local mills range between Rs 2,600 and Rs 3,500 per tonne.  

Adjacent constituencies mirror Baramati’s complexities. In Daund, a mill previously managed by a Mahayuti candidate is burdened with over Rs 200 crore in liabilities, unpaid wages, and farmer dues. “The factory hasn’t paid salaries or cleared farmers’ bills despite funds approved by Deputy Chief Minister Devendra Fadnavis,” laments a local farmer, who now sells cane to jaggery factories at competitive rates. 

  Similarly, in Indapur, another assembly constituency within Baramati’s Lok Sabha limits, both Mahayuti and MVA candidates are sugar factory operators. “Neither side’s factories are doing well. But what can be done? People will quietly vote for their choice,” says Ravindra Bhoite, a farmer. 

  Over in Purandar, many farmers — who usually sell produce to Baramati Agro Limited as it offers a “good rate” — eye promises of a new sugar factory from the MVA candidate, while in Malshiras, part of Sharad Pawar’s stronghold Madha Lok Sabha constituency, the dominance of local leaders running cooperative mills holds sway. 

  Dhananjay Sanap, an agricultural researcher and author, says a lot depends on local factors. “In the case of sugar factories, people look at the fair and remunerative price (FRP) offered by a mill, how long it may take to clear the bills, and if any bill is pending.”

  The delayed start to this year’s cane-crushing season — November 15 instead of the usual October —adds to the challenges. While extended rains promise better cane recovery, the timing creates issues as crushing may overlap with summer heat. 

“Also, politicians want factory employees to work for them for their election campaigns”, stretching their already demanding schedules, says a person associated with the region's sugar factories. 

Farmers and cooperatives are also grappling with the government’s sugar export ban and calls to increase the minimum support price (MSP) for sugar.

 

Also, earlier restrictions on ethanol production from sugarcane juice and b-heavy and c-heavy molasses (sugar substitutes) sparked an outrage among factory operators. But the lifting of these curbs in August this year has provided some financial relief, allowing factories to profit beyond the crushing season. 

 

“Producing ethanol and rectified spirit provides a crucial financial boost to sugar mills, as it allows operations to continue beyond the crushing season,” explains Sanap. “Previously, income streams dried up once the season ended. Now, mills preserve molasses, a sugar byproduct, to produce ethanol during the off-season, generating revenue that supports both the mills and the farmers. However, earlier restrictions by the central government had a significant impact. These policies forced mills to produce larger quantities of sugar, stabilising market prices but limiting their financial flexibility.” 

Farmers in the Pune region are seen as politically astute and economically resilient vis-à-vis their counterparts in drought-prone areas like Marathwada, Khandesh, or Vidarbha: Growing cash crops under favourable conditions has given them bargaining power and a degree of financial security.  

The Sharad Pawar-Ajit Pawar feud has set the stage for one of Pune district’s tightest elections. Both leaders wield considerable power through their control of cooperative banks, sugar factories, and the dairy industry. “Therefore, it is difficult to predict anything,” adds Sanap.