Maharashtra's sugar industry has heaved a sigh of relief. On Thursday, a sugar cooperative from Kolhapur declared the first advance of Rs 2,650 a tonne

With the Swabhimani Shetkari Sanghatana (SSS) calling off its agitation for higher cane prices, Maharashtra's sugar industry has heaved a sigh of relief. On Thursday, a sugar cooperative from Kolhapur district declared the first advance of Rs 2,650 a tonne.

Of late, the SSS agitation had turned violent, with activists resorting to road blockades. A few buses operated by the Maharashtra State Road Transport Corporation were allegedly set on fire.

Raju Shetty, SSS chief and member of Parliament in the Lok Sabha, has demanded all sugar factories should provide Rs 2,650 a tonne in two instalments-an immediate payment of Rs 2,200 a tonne and the rest after two-three months. He said his organisation would wait till December 31 for the payment. If factories failed pay by then, a fresh agitation would be launched in January next year, he added.

A month ago, SSS, along with other farmer organisations, had launched an agitation demanding higher cane payment. Shetty had sought Rs 3,000 a tonne, while the Shetkari Sanghatana, led by Raghunath Dada Patil, sought Rs 3,500 a tonne. However, sugar factories expressed inability to do so, citing the prevailing sugar price of Rs 2,600-2,650 a quintal.

Shetty criticised the state government for not doing enough. He said the Centre, the state government and sugar factories should immediately take a decision on payment of the first instalment of Rs 2,650 a tonne. He added the decision to call off the agitation was taken to provide relief to farmers and labourers engaged in cane cutting.

This season, Maharashtra has far produced 0.5 million tonnes (mt) of sugar, against 0.85 mt in the corresponding period last year. Of the 170 sugar cooperative and private sugar factories, 103 have started crushing.