Acute labour shortage hits cane supply to Punjab sugar mills; low yields and shrinking area deepen crisis

Beyond this season’s labour crisis, farmers and mill officials point to a prolonged decline in the area under sugarcane as a major structural issue. Punjab once had nearly 1 lakh hectares under cane cultivation, but over the past few years, this has steadily declined to 88,000–95,000 hectares. Rising input costs, uncertainty over labour availability, delayed payments in earlier years, and lack of policy push have driven farmers towards alternative crops and agroforestry.

According to Sanjay Singh, Vice President (Cane) at Indian Sucrose Mill in Hoshiarpur’s Mukerian city, the mill is witnessing a cane shortage for the first time in his 17-year tenure. “During peak harvest, we normally receive around 700 trolleys per day. This season, arrivals are fluctuating between 400 and 475 trolleys,” Singh said. “There is no pressure on the mill to issue harvesting slips. Farmers are getting their cane harvested without waiting, which itself indicates the shortage.”

Yield levels have also taken a severe hit. “Earlier, average yields were around 350 quintals per acre. This year, they have dropped sharply to 200–225 quintals per acre in several areas under the mill due to poor ripening, shortened growth period because of excessive rain in the rainy season,” he added.
The Mukerian mill began crushing in late November 2025 and is expected to operate until April 10–15, possibly extending to April 20, but at suboptimal capacity. Across Punjab, a majority of mills are now likely to shut by February, much earlier than usual.

Fewer migrant labourers from UP and Bihar

Mill officials say the reduced inflow of migrant labour from Uttar Pradesh and Bihar, traditionally the backbone of cane harvesting in Punjab, is the principal reason behind the supply crunch. Nearly 40 per cent of labourers did not return this season.

“Following certain incidents in Hoshiarpur, some panchayats took a strict view on migrant settlements, which discouraged labourers from coming this season,” Singh said.

Pankaj Kumar, General Manager (Cane), AB Sugars Limited, Dasuya, also in Hoshiarpur, cited multiple factors behind the labour shortage. “Due to the Bihar elections, many labourers who usually stay back after paddy harvesting in November went home and did not return. Aadhaar-related issues in several villages and diversion of labour to states like Maharashtra, Karnataka, and Tamil Nadu further worsened the situation, especially in Hoshiarpur and adjoining areas.”

The AB Sugar mill has 535 notified villages covering about 41,000 acres, with a production potential of 1.40 crore quintals. However, the mill now expects to crush only around 90 lakh quintals, with operations likely to end by April 7.

“Earlier, we would reach full capacity within four to five days of starting the mill in December. This year, even after 45 days, arrivals have remained stuck at 400–410 trolleys per day, compared to 500 trolleys earlier,” Kumar said.

Nawanshahr, Morinda and Phagwara mills echo concerns

Similar trends are evident at the Nawanshahr sugar mill, which draws cane from a 25-km radius. While the notified area has largely remained unchanged, harvesting delays caused by labour shortages have constrained supplies. General Manager G C Yadav said that younger generations from UP and Bihar were increasingly opting for education and non-farm employment, reducing the pool of agricultural labour.

At Morinda Cooperative Sugar Mill, General Manager Tranvir Singh said labour availability was down by nearly 30 per cent. “Yields have declined from 350–400 quintals per acre to 290–310 quintals this season. Daily trolley arrivals have dropped from 200 to about 150–160,” he said. The mill has engaged private mechanical harvesters, though high costs limit their use.

V P Verma of Golden Sandhar Sugar Mill, Phagwara, also confirmed a shortage of cane supply this season, attributing it mainly to labour scarcity and reduced yields, which have kept the mill receiving less cane as compared to the previous years.

“The combined impact of labour shortages, falling yields and shrinking cane area has made this one of the most challenging crushing seasons in recent memory,” said Satnam Singh, a cane grower and general secretary of the Bharatiya Kisan Union (Doaba).

“Sugarcane is an eco-friendly crop, consumes relatively less water, generates employment and boosts farmers’ income. To sustain this sector, the state must actively promote the expansion of the cane area.”

He added that in his village, the area under sugarcane had declined from 600 acres to 350–400 acres.

“Many farmers in Hoshiarpur have moved away from cane due to years of government indifference and are now adopting agroforestry, which offers better returns.”

Punjab Cane Commissioner Dr Amrik Singh acknowledged the problem. Almost all sugar mills in the state have reported labour shortages this season, which has directly affected cane supply and crushing operations, he said.