Maharashtra farmers smitten by sugarcane

Expect better realisations and increased crushing capacity utilisation

Farmers in Maharashtra are shifting their focus from cultivation of other agri-products to sugarcane. This is in expectation of higher realisations from increasing demand and an estimated 30 per cent rise in utilisation of crushing capacity this year.

As a result, the sugarcane acreage is estimated to grow 24.61 per cent to 8 lakh hectare this year from 6.42 lakh hectare last year.

"The farmers who shifted to crops like soybean, sunflower and maize during the drought years are returning to sugarcane. It is a farmer-friendly crop and has an assured market. Areas which went for the cultivation of other crops are now back to sugar," said Prakash Naiknavare, managing director, Maharashtra State Co-op Sugar Factories Federation.

The state's realisation in sugarcane cultivation is about Rs 98,000 a hectare, which is much higher than the average realisation in the rest of the country, which is around Rs 68,000 to Rs 70,000 a hectare. Further, if sugarcane production is compared with other agri output, the realisation is double.

Maharashtra contributes 10 per cent to total annual domestic sugar production. It has a crushing capacity of 800 lakh tonne a year from the mills that are active.

The state recorded its highest crushing at 576.41 lakh tonne in 2001, but that followed a drastic decline in the next three years. The crushing fell to as low as 195 lakh tonne in 2004-05 in the wake of a drought lasting two years and that saw farmers shift to other crops.

But since then the industry has seen a gradual revival, sugar production increasing in phases with more corporations and co-operatives, besides private players, having started expanding their capacities.

Incidentally, 175 sugar mills, which are operational out of a total of 204 (including 22 private mills), have thus far managed to utilise only 75 per cent of the total crushing capacity.

"Thus," Naiknavare said, "the farmers have room to produce more sugarcane if mills run at 100 per cent capacity utilisation". There is a statutory minimum price (SMP) for sugar, which is decided under the Sugar Control Order as part of Essential Commodity Act.

"Every year, there is a rise in SMP and farmers are not dependent on market vagaries, as there is an assured buyback," Naiknavare added. On Wednesday, Chief Minister Vilasrao Deshmukh met representatives of the federation and promised a minimum price of Rs 850 per quintal for sugarcane producers in the state.

Although, depending on the variety, harvesting of sugarcane takes 12 to 18 months, which is three times the time horizon involved in harvesting of most perennial crops that the farmers have been shifting from, they have found cultivation of sugarcane more rewarding.

Another aspect that has played a key role in attracting farmers' interest in sugarcane is that the crop does not require continuous attention and caring after initial three months post-sowing and fears of crop diseases are also comparatively less.