Global Economy

Competition among sugar mills for cane to get fierce as drought shrinks crop in Maharashtra, Karnataka



Pune: Sugar mills of Maharashtra and Karnataka, which together account for more than half of the country’s production of the sweetener, are gearing up for a fierce battle among themselves to get every stalk of sugarcane possible.

For the first time ever, Karnataka has fixed an official date to begin sugar production and take legal action against mills that do not obey. Meanwhile, just before a crucial government meeting, the sugar industry of Maharashtra is divided over the right time to begin this year’s sugar production so as to maximise the chances of getting a larger share of the shrunken availability of the raw material.

This situation is making officials concerned.

Richard Vincent D’souza, secretary at the commerce and industries department in Karnataka, said: “If the sugar mills begin their crushing operations early due to competition to get more cane, it leads to crushing of immature cane, which results in lower production of sugarcane.”

The Karnataka government had never put any restrictions on the state’s sugar industry about when they could begin the sugarcane crushing season. However, this year, sugar mills from north Karnataka will be allowed to start the season from November 1 to 15. Any mill that begins crushing operations before November 1 will have to face legal actions, said a government order.

In Maharashtra, the committee of ministers that fixes the sugarcane crushing date for the state, is expected to meet soon to take a call on when to begin sugar production. Mills from the drought-hit areas want an early beginning.The Western India Sugar Mills Association (WISMA), which represents the private sugar mills from the state, has written to the Centre and the state government, requesting to begin the crushing operations from October 15.”This year, sugar mills will face scarcity of sugarcane due to the drought-like situation, lower yields and recovery,” the WISMA said, citing competition from jaggery units which have no restrictions on when to begin crushing of sugarcane.However, the mills from the well-irrigated southern Maharashtra want to begin in November to avoid losing cane to the mills in Karnataka.

“Sugar mills from south Maharashtra need to begin operations simultaneously with the mills from Karnataka. We always dread losing sugarcane from our own catchment areas to the sugar mills from Karnataka, who used to begin operations as early as in September when the cane is immature,” said Vijay Autade, a veteran sugar expert from Kolhapur.

The Maharashtra State Cooperative Sugar Factories Federation (Sakharsangh), which represents the cooperative sugar mills of the state, has decided to request the state government to start the season from November 1 subject to the prevailing rainfall condition. “We have suggested that if the drought-hit areas do not get any rainfall, then they should be allowed to begin the season from October 15.The sugar mills from the rest of the state should be allowed to begin from November 1,” said Sanjay Khatal, managing director, Sakharsangh.



READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.