The Centre has turned down a demand by private sugar mills of Maharashtra that they need compensation for commencing the crushing season of 2017-18 in October. Usually Maharashtra’s sugar crushing season begins after Diwali. Private sugar mills in Maharashtra had urged Union food and consumer affairs minister Ram Vilas Paswan for a compensation of Rs 500 per tonne on account of the losses that arise out of lower recoveries in sugar production following an early start of the season. The Centre had issued directives to millers across the country to commence the crushing season of 2017-18 early in October to tide over any sugar shortage during the festive season. The industry has been raising concerns over a possible shortage of sugar during the peak festive season in Diwali and some of trader organisations have been urging the government to import sugar to prevent any further spike in prices.
In a representation sent to the minister, the Western India Sugar Mills Association (WISMA) president BB Thombare had said that the Maharashtra sugar mills are willing to commence the crushing season early in October. Normally, the crushing season in the state begins after Diwali in November when cane maturity is better and the monsoon is over. The sugar recovery in November remains 10-11% in the state, and in October the recovery drops to 8.5% to 9%, Thombare said. In a reply to the demand put forward by the WISMA, GS Saha, director of sugar policy at the ministry of consumer affairs, said that the request of WISMA for grant of incentive to start the crushing season early in October 2017 has been examined by the department.
“Usually, mills commence operations two to three days after Diwali. This year, Diwali is falling on on October 19 and therefore sugar mills in the normal course may start their operations by October 22 and 23. It is a fact on record that at the time of commencement of sugar season, recovery is less compared to normal recovery and it improves with the passage of time as the season proceeds,” he said. “Recovery rate in October in Maharashtra generally remains less than 8% and even in November it remains between 9-9.7%. Recovery rate improves only in the month of December,” he said. Hence pre-poning crushing operations by two weeks may not cause a substantial loss of recovery, he added. Moreover, as a bumper crop is expected in the ensuing season, crushing should start early, otherwise recovery will suffer at the fag end of the season due to increasing temperatures because of the onset of summer, he said.