According to the latest report of the Maharashtra Rajya Sahakari Sakhar Karkhana Sangh — a federation of cooperative sugar mills — the plan for 2007-08 was to crush cane in 175 mills out of the total registered 212. However, as of December 29, only 147 mills had commenced their crushing season. The mills in operation have crushed 196.62 lakh tonnes of cane, producing 20.94 lakh tonnes of sugar.

On the same date last year, 156 mills were operational and they had crushed 243.72 lakh tonnes to produce 25.65 lakh tonnes of sugar. The current deficit is 47.10 lakh tonnes of cane and 4.71 lakh tonnes of sugar. The pace at which the industry is operating, the current season could be worse than last year.

Last year, about 794 lakh tonnes of cane was crushed in all to produce 91 lakh tonnes of sugar. With crushing starting about a month late, 43 lakh tonnes of cane remained uncrushed. The state Government had stepped in, offering relief to farmers in the form of Rs 25,000 per hectare, thereby shouldering a financial burden of Rs 132 crore.

Since the state Government includes politicians who are also sugar barons, the package to bail out the sugar industry included waiver of purchase tax worth Rs 252 crore, a transport subsidy of Rs 130 crore, and a counter-guarantee of Rs 160 crore to 72 sick mills.

But this year’s situation is worse. The crushing season began six weeks late and an unprecedented 844 lakh tonnes of cane is to be crushed. If the entire cane is crushed, sugar production may touch a record 100 lakh tonnes. However, considering that the season has started late and the number of sick mills is more, there is a possibility of 100 lakh tonnes to 150 lakh tonnes of cane remaining uncrushed.

“The Government had planned to start the crushing season on October 1, but it actually started on November 15 because of prolonged rains and Diwali, which affected the availability of labourers to cut standing cane,” the Managing Director of the Maharashtra Rajya Sahakari Sakhar Karkhana Sangh, Prakash Naiknavre, says.

He adds that while the Government has done its bit, “additional crushing capacity has been added and efforts are being made to help the industry”, the situation is going to be “worse than last year”.

Mounting losses

2006-07:

Crushing season delay: 4 weeks

Sugarcane crushed: 794 lakh tonnes

Uncrushed: 43 lakh tonnes

2007-08 (estimates):

Crushing season delay: 6 weeks

Sugarcane to be crushed: 844 lakh tonnes

Sugarcane likely to remain uncrushed: 100 to 150 lakh tonnes