Mumbai, Sep 30 (IANS) Drought conditions across Maharashtra are set to trigger a sharp decline in sugarcane yield and cause a significant drop in cane weight due to water scarcity.
Addressing these concerns, Harshvardhan Patil, Chairman of the National Federation of Cooperative Sugar Factories Ltd (NFCSF), on Wednesday demanded that the state government provide a grant of Rs 1,000 per tonne directly to farmers.
Furthermore, noting that reduced sugar recovery rates would cost sugar mills Rs 1,000 to Rs 1,200 per tonne, Patil urged the government to extend a subsidy of Rs 500 per tonne to processing factories.
Speaking at a press conference in Mumbai, Patil, a former Maharashtra Cooperation Minister, said the severe drought would adversely affect cane growers, sugar mills and consumers alike.
He expressed concern over whether sufficient sugar would be produced next year to meet annual national demand.
“The combination of high rainfall variability and a strong El Nino outlook could increase uncertainty around cane yields, recovery and sugar production in Maharashtra and Uttar Pradesh,” he said.
Patil added that the overall impact would depend heavily on rainfall distribution during the remaining growth period.
Although the state government has directed mills to commence operations on October 15, Patil pointed out that running processing plants requires large quantities of water, which is currently being reserved strictly for drinking purposes.
While Water Resources Minister Radhakrishna Vikhe Patil has verbally assured that permissions have been granted, he said no official circular has yet reached the mills.
Patil explained that crushing cane prematurely amid drought conditions could reduce sugar recovery rates to only 6 per cent to 6.5 per cent, even though mills are mandated to pay the Fair and Remunerative Price (FRP) calculated on a baseline recovery rate of 10.25 per cent.
He noted that recent increases in sugar prices had led farmers to expect higher rates for their produce. However, factories were financially unable to meet these expectations without government intervention.
Consequently, the Federation urged the government to fix the Minimum Selling Price (MSP) of sugar at Rs 45 per kg, in addition to providing the proposed subsidy to farmers.
Underscoring the industry’s far-reaching impact on farmers, workers, exporters and the state economy, Patil noted that a delegation led by Chief Minister Devendra Fadnavis recently met Union Cooperation Minister Amit Shah.
The delegation submitted key demands, including an increase in the MSP of sugar, a Rs 5 hike per litre for B-heavy and C-heavy molasses ethanol, loan restructuring and expansion of the Sugar Development Fund.
However, officials have yet to take a decision on these proposals.
Patil added that the Central government’s policy against procuring ethanol this season would further compound the financial distress faced by both sugar factories and sugarcane growers.
–IANS
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