As per the official figures, Maharashtra is likely to produce around 8.5 million tonnes of sugar by November. According to Indian Sugar Mills Association statistics, acreage in India has risen from nearly eight lakh hectares in 2009-10 to to 10.25 lakh hectares for 2010-11.
Raju Shetti, leader of Shetkari Sangathna and MP from Hatkanagale, Kolhapur said, “Here, we have around 750 lakh hectares under sugarcane cultivation. In 2006, we had nearly 773 lakh hectares. However, over the past few years many factories have been re-opened. Other factories have increased their crushing capacity. The figures given by the government agencies about an increase in sugarcane cultivation are not significant enough to warrant the opening of such a large number of mills.”
For a factory to remain commercially viable, it should have a crushing capacity of at least 5,000 tonnes a day, Shetti said. With a large number having come up, the stock likely to be produced this year may not last beyond April next year, he said. However, mill owners such as Vaibhav Naiknavadi, chairman, Hutatma Sugar Mills in Sangli maintain that the crop is likely to be better this year as rainfall has been good. “The fall in sugar prices is not due to excess production but improper government policies. We need better export policies. We should learn from countries such as Brazil where ethanol derived from sugarcane is being used to run cars.”
In 2009-10, it was predicted by both the central and state government that the sugar crop would be between 4.5-5 million tonnes, much lower than usual. But the total crop stood at 6.15 million tonnes. Farmers’ associations in the state allege that this led to a rise in sugar prices owing to hoarding by traders.
Anil Bansode, joint director, sugar commissionerate, said, “At present, indicate that 38 sugarcane factories have started the crushing. The number could go up to nearly 160 as the rains have been good this year. Last year, we had 141 of them operational by the end of of the season as the unexpected rains in November gave the crop a boost.”