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Maharashtra witnessed record sugar production this year. By the end of this crushing season, it will be producing more than 10 million tonnes of sugar. This will be around 40 per cent of the country’s total production, 25 per cent higher than last year's.
The Indian Sugar Mills Association (Isma) has forecast this year’s output at 26 million tonnes against 24.4 million tonnes the previous year. “In Maharashtra, in the last five years, sugarcane prices have gone up drastically as compared to other crops like wheat, soybean, cotton or paddy. Hence, farmers are again growing cane despite sugar prices having fallen,” said Abinash Verma, DG, Isma.
But sugarcane cultivation might prove to be a bitter pill for the industry and farmers. The industry as a whole is going through a rough patch. Production is much higher than the demand. Meagre export demand, lower prices and high cane arrears are reasons for trouble. Sugar mills are not able to cover the cost by selling still they sold in distress last month but not able to clear the cane arrears.
For crushing season 2014-15, mills in the state produced 9.5 million tonnes (mt) of sugar till March 31, 2015. There is almost 10 mt tonne sugarcane yet to be crushed from Kolhapur, Satara, Pune and Solapur.
Sanjeev Babar, managing director of the Maharashtra State Federation of Cooperative Sugar Factories, said, “The issues have become complex. The sugar factories are already having surplus stock from the last four years and prices are not going up. Buffer stock of sugar would have been a solution for this problem. Now, central and state governments should come forward to help the industry. They must give some financial aid to the industry. Although the state government has offered Rs 2,000 crore interest free loan to sugar factories, it is not viable. So, our demand to the central government is to give a complete financial help to the sugar industry of Maharashtra.”
In Maharashtra, around 142 sugar mills were under operation, as compared to 79 sugar mills in 2013-14 and 36 mills were closed down. Of the total cane arrears so far in the 2014-15 marketing year, Rs 3,000 crore belongs to mills in in the state. The total unsold stock for this year might rise to about 2 million tonnes.
The Indian Sugar Mills Association (Isma) has forecast this year’s output at 26 million tonnes against 24.4 million tonnes the previous year. “In Maharashtra, in the last five years, sugarcane prices have gone up drastically as compared to other crops like wheat, soybean, cotton or paddy. Hence, farmers are again growing cane despite sugar prices having fallen,” said Abinash Verma, DG, Isma.
But sugarcane cultivation might prove to be a bitter pill for the industry and farmers. The industry as a whole is going through a rough patch. Production is much higher than the demand. Meagre export demand, lower prices and high cane arrears are reasons for trouble. Sugar mills are not able to cover the cost by selling still they sold in distress last month but not able to clear the cane arrears.
For crushing season 2014-15, mills in the state produced 9.5 million tonnes (mt) of sugar till March 31, 2015. There is almost 10 mt tonne sugarcane yet to be crushed from Kolhapur, Satara, Pune and Solapur.
Sanjeev Babar, managing director of the Maharashtra State Federation of Cooperative Sugar Factories, said, “The issues have become complex. The sugar factories are already having surplus stock from the last four years and prices are not going up. Buffer stock of sugar would have been a solution for this problem. Now, central and state governments should come forward to help the industry. They must give some financial aid to the industry. Although the state government has offered Rs 2,000 crore interest free loan to sugar factories, it is not viable. So, our demand to the central government is to give a complete financial help to the sugar industry of Maharashtra.”
In Maharashtra, around 142 sugar mills were under operation, as compared to 79 sugar mills in 2013-14 and 36 mills were closed down. Of the total cane arrears so far in the 2014-15 marketing year, Rs 3,000 crore belongs to mills in in the state. The total unsold stock for this year might rise to about 2 million tonnes.
