Maharashtra and Karnataka cane farmers oppose early crushing before Diwali
Farmer organizations in Maharashtra and Karnataka are resisting a government-backed effort to begin sugarcane crushing about one month early to bolster sugar supplies during Diwali. They are seeking compensation for lower yields and recovery, along with higher sugar and ethanol prices.
Farmers call for mills to delay operations
Sugarcane farmer organizations in Maharashtra and Karnataka have opposed efforts by India’s central government to begin the crushing season early in order to ensure adequate sugar availability during Diwali. The groups have urged mills and growers not to start harvesting or crushing until the authorities decide on their demands for compensation and higher sugar and ethanol prices.
Chinimandi, citing a report published by The Economic Times, said the government had asked sugar mills to start crushing roughly one month earlier than usual after lower production estimates and exports reduced domestic stocks. The report said India’s position shifted from sugar exporter to importer over the past six months, while sugar prices reached historically high levels. The proposed acceleration is intended to increase near-term market availability and restrain prices.
Yield and recovery losses are central to the dispute
Farmer leaders argue that immature cane contains less recoverable sugar and has not reached its full field weight. They estimate that early harvesting could reduce cane production by as much as six tonnes per acre, causing an economic loss of approximately 20,000 rupees per acre. Sucrose content generally rises after November, according to the organizations, meaning an early start could also reduce the amount of sugar recovered by mills from each tonne of cane.
That combination would affect both sides of the supply chain. Growers would deliver fewer tonnes and could receive weaker payments linked to recovery, while mills would process less efficient feedstock. The organizations say mills should not bear the cost of improving festival-season sugar availability without compensation. They have also called for increases in the minimum selling price of sugar and ethanol prices, arguing that stronger mill revenue would improve the industry’s ability to pay farmers more for cane.
FRP rules increase the financial exposure
India’s fair and remunerative price, or FRP, for sugarcane is tied to sugar recovery. Farmer organizations warn that weak recovery this season could therefore affect the cane payments growers receive next year. Under the current system, mills must pay the applicable minimum FRP based on a recovery rate of 10.25%, even when their actual recovery falls below that level. Farmer leaders say this could leave mills exposed as well as growers if immature cane is processed.
The dispute is particularly significant because farmer leaders claim mills on both sides of the Maharashtra-Karnataka border produce about half of India’s sugar. The producing areas are also experiencing drought-like conditions, adding uncertainty to cane development and recovery. Organizations demonstrated outside Union Food and Consumer Affairs Minister Pralhad Joshi’s residence in Hubballi last week and demanded compensation for losses caused by premature crushing. Joshi has called a meeting for October 12 to discuss their demands. Its outcome will determine whether the government can secure an early start without disrupting harvesting, mill economics and farmer payments in India’s main sugar-producing belt.
