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LATEST NEWS UPDATES | Cane farmers may earn less this year

Cane farmers may earn less this year

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published Published on Sep 14, 2010   modified Modified on Sep 14, 2010


Maharashtra’s sugarcane farmers who reaped a bonanza in 2009-10 due to surging sugar prices may have to settle for a 25-30% loss of income in the upcoming sugar year October 2010-September 2011. Farmers are expecting to be paid at least the Central government-fixed fair remunerative price. But with an estimated 22% jump likely in cane production, it may well become a buyer’s market with mills calling the shots.

“I expect farmers to deliver cane to my factory without knowing what price I am going to pay them for the cane,” said the managing director of a factory in Solapur district.

This contrasts with last year when mills waged a price war with each other to woo farmers holding cane that was in short supply. Factories ended up paying `2,500-2,800 per tonne.

“We will be able to pay `300-400 per tonne above the FRP to farmers if sugar prices remain stable in the range of `2,450-2,500 per quintal. It means cane rate of up to `2,000 including harvesting and transport cost (H&T) will be possible without jeopardising our profits,” said the managing director of a Kolhapur-based cooperative mill.

Maharashtra Cooperative Sugar Factories Federation managing director Prakash Naiknavare said, “My estimate is that the cane prices in the state will be about `300-400 per tonne higher than the state’s average FRP of `1,684. Those who do not pay the FRP will be legally punishable.”

But some millers are hoping to work around the FRP. “I would like to wait till December to declare my factory’s cane rate because if the central government decides to decontrol the sugar industry then, sugar prices may crash. If this happens, it will help me give less cane price,” said the managing director of the Solapur-based mill. Namdev Mete, a farmer from Indapur taluka of Pune district, said, “The production cost of the cane per tonne about `1,000. Hence a rate of `1,800-2,000 per tonne, though less than last year, would be profitable for me.”

Farmer leaders are trying to gain mileage by questioning estimates of a bumper crop. Raju Shetty, leader of the Swabhimani Shetkari Sangathana and an MP, said “Firstly, we don’t accept the FRP declared by the central government. A picture of excess cane production is being created deliberately.

Though there is an increase in cane acreage, the overall cane production is likely to remain at par with the previous year. This is because the tonnage will be less this year due to the late sowing of Adsali (an 18-month duration variety) cane due to prolonged rains in 2008. Also the intense summer has affected cane growth in south Maharashtra.”


The Economic Times, 14 September, 2010, http://economictimes.indiatimes.com/markets/commodities/Cane-farmers-may-earn-less-this-year/articleshow/6549802.cms


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