The Maharashtra government’s successful implementation of the Centre’s sugar development programme has attracted 50 mills in less than two months and the number is likely to double by the end of May. These companies have evinced interest in taking all-out efforts to raise incremental output of 50 tonnes in 1,000 hectare (ha) of identified potential area.
Maharashtra stands third with an average yield of 70 tonnes per ha, way behind Tamil Nadu and Uttar Pradesh with an average output of 100 tonnes per ha and 80 tonnes per ha respectively. Remarkably, in the sugar year 1980-81, the state recorded the highest ever yield at 92 tonnes per ha, which the government targets to achieve in the next two years through promotional efforts.
“During the next sugar crushing season, we are estimating about 15-20 per cent increase in cane and sugar output as farmers have realised the benefits of cane crop. Last year, the incremental remuneration was announced by the time sowing was over. Farmers would realise the full benefit of higher cane prices this season, said Prakash Naiknavare, managing director of Maharashtra State Co-operative Sugar Factories Federation (Sugar Federation).
“However, the harvesting of the crop currently under sowing will take place in 2010-11, which we expect to turn out as a bumper crop. Since then, sugar cycle will turn from deficit to surplus,” he added.
Mills have provided an advance of Rs 1,250 per tonne to sugarcane farmers, which is likely to rise up to Rs 1,500 per tonne towards the end of the current year. While the next year, cane prices are likely to rise further to Rs 1,600-1,650 a tonne, which has already been conveyed to farmers. “We hope farmers will return from other crops finding cane more remunerative,” he quipped.
Anticipating the need to stop farmers’ migration from other remunerative crops and retaining existing ones by making sugarcane growing more attractive, the Central government in January this year announced the special package in which mills return on investment was estimated in the proportion of 1:4.5. In Maharashtra, cane harvesting is fully controlled by sugar mills unlike in Uttar Pradesh, the largest sugar producing state where onus of maturing cane harvesting and supply to mills lies with farmers.
The development assumes significance as India is estimated to sink into deficit of sugar output to 16 million tonnes this year from the level of 28.5 million tonnes in the last sugar season (October - September). The output in Maharashtra too is estimated to reduce heavily to 47-48 lakh tonnes by crushing 400-410 lakh tonnes of cane as compared to 91 lakh tonnes with 761 lakh canes in the last season.
As on date, sugar output in the state declined 34.50 per cent to 45.17 lakh tonnes by crushing 390.37 lakh tonnes of cane as compared to 68.93 lakh tonnes with 576.68 lakh canes in the last season.
So far this season, the state’s sugar yield is running 0.38 per cent lower than the previous year’s figure of 11.95 per cent.
Meanwhile, sugar mills in Maharasthra are set to declare closure of current crushing season by the end of April 15, two months ahead of the normal crushing season, due to unavailability of cane.
According to data compiled by Sugar Federation, 85 per cent or 118 sugar operational crushing units have been shut so far this year as against a mere 4 mills till the corresponding day last year. This year, a total 143 mills were registered for crushing as against over 160 last year.
