Karnataka is likely to witness a marginal rise of about 10 per cent in sugarcane production for the next sugar season commencing October 2009. This is despite a rise in the statutory minimum price of sugarcane announced by the Centre for the next year.
For 2009-10, the cane output in Karnataka is likely to see a rise of around 10.6 per cent at 17 million tonnes compared to the present year. The state had seen its highest production of 26 million tonnes of cane and 2.8 million tonnes of sugar during 2007-08 with a sugar recovery of 11 per cent. For the next season commencing October 2009, the sugar recovery in the state has been estimated at 10.05 per cent, Jagadeesh Gudagunti, president, South Indian Sugar Mills Association (SISMA) said.
The Cabinet Committee on Economic Affairs (CCEA) had announced in June this year a 32.74 per cent increase in the statutory minimum price (SMP) of sugarcane for the 2009-10 sugar season (October-September) at Rs 107.76 a quintal.
It was felt that the increase in prices will encourage farmers to expand the acreage under sugarcane. The announcement came a little late as most of the sowing of the crop to be harvested in 2009-10 season had been completed, he said. Sugar output in the 2008-09 season has touched a three-year low of 1.8 million tonnes in Karnataka on lower sugarcane production as farmers shifted to more remunerative crops. The diversion of cane towards jaggery also added to the woes of the millers, Gudagunti said.
The SMP is linked to a recovery of 9.5 per cent, which means that the grower gets a premium of Rs 1.13 for every 0.1 percentage point increase in recovery. However, during the present year, which will end in September 2009, the final quantity cane to be crushed may touch 16 million tonnes with a sugar recovery of 10.5 per cent. “The sugar factories need to maintain certain discipline. They should crush only matured cane, whereas many mills are resorting to crushing immature cane to procure more cane for their mills. This results in lower recovery of sugar,” Gudagunti said.
There are 54 sugar mills in Karnataka, of which 50 mills were operational in the present year. The crushing in the state has already come to an end due to shortage of cane. It is estimated sugarcane is cultivated in about 725,000 acres in Karnataka during the present year. At an average output of 40 tonnes per acre, the state should produce 29 million tonnes of cane. However, many farmers will cut the cane about two to three months in advance resulting in lower output, Gudagunti said. In order to avoid the situation, the SISMA has issued a direction to all mills in southern parts of the state to start crushing only after August 15. The mills in the northern parts of the state have been asked to start crushing after October 15, 2009, he said.
