Crushed by cane

“The total sugarcane production in Maharashtra has gone up to 845 lakh tonnes and the final output of sugar is expected to go up to 96 lakh tonnes compared to last year’s 91 lakh tonnes,” said Rajgopal Deora, the state sugar commissioner.

The glut in production last season left over 30 lakh tonnes sugarcane spread over 52,000 hectares uncrushed, which was followed by dozens of suicides in the Marathwada region. The state government offered financial assistance of Rs 25,000 per hectare for the uncrushed cane that put the burden of Rs 132 crore on the state coffers.

The state Government has extended guarantees worth Rs 106 crore for 46 mills to help them start with the crushing on time. The crushing will start in the sugar bowl of western Maharashtra, followed by Marathwada and other regions in the state. “The cane production is up by about 50 lakh tonnes and we will ensure that all cane is crushed to avoid the crisis like last year,” said Deora.

About 40 cooperative sugar mills in western Maharashtra are ready for early crushing, though farmer organisations including Sharad Joshi’s Shetkari Sanghatana and its breakaway faction, Swabhimani Shetkari Sanghatana, have started an agitation, demanding payment of Rs 380 per farmer. Last year, the cooperative sugar mills in the state had agreed to pay Rs 1,280 per tonne for crushed cane. While Rs 900 was paid, the mills refused to pay Rs 380. “We want the mills to pay the pending money,” said MLA Raju Shetty.

The state Government’s announcement regarding the Statutory Minimum Price (SMP), currently being decided by the financial institutions and sugar mills, has added fuel to the fire. The matter is turning into a political controversy with resistance coming from the Congress and Opposition parties.

“The state Government can’t shirk its responsibilities by allowing the millers and financial institutions to decide the SMP. It’s not only unjust to sugarcane farmer, but is also illegal,” said Kanhaiyalal Gidwani, president of the Maharashtra Pradesh Congress Coordination Committee of Consumer Protection, Market, Industry & Commerce Department.

Meanwhile, the Central Government has announced a relief package for sugarcane growers which provides for easier loans to millers for clearing the farmers’ dues. The decision was taken at a meeting of Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh.