India is facing potential delays in the harvest of its massive sugarcane crop, threatening supply worldwide, as millions of migrant workers needed for the harvest may be scared to travel as Covid-19 infections surge throughout the country.
India’s sugar harvest begins in October, when other major producers are winding down. The country however, relies on migrant workers to travel throughout the nation to cut sugarcane. But with 3.7 million Covid-19 cases, the third-highest worldwide, there are fears that the harvest could act as a vector for further infections in India.
Harvest delays would result in Indian mills producing sugar more slowly at a time when Brazilian sugar production will be winding down and large producer Thailand is harvesting its smallest crop in 10 years, reducing availability of sugar in the global market.
The slow pace of crushing in India could support global prices that are trading near their highest levels in five months.
“We are anticipating some delays at the beginning of the season. Many things depend on how much work is available at local level and the spread of the virus in October,” said BB Thombare, President of the West Indian Sugar Mills Association (WISMA).
India produces 370 million tonnes of cane annually, second-most worldwide behind Brazil. “The fear of getting infected may prompt some of the laborers to accept less lucrative work around their native place,” Thombare said.
Sugar mills in the producing states of Maharashtra, Karnataka and Gujarat rely on seasonally migrating labours to harvest sugarcane, and many of these labourers may not come this year, he said.
Inter-State travel
“I believe that Maharashtra relies on 7-9 lakh cane cutters that travel from within the State and from other States,” said Michael McDougall, Managing director at agricultural commodities broker Paragon Global Markets in New York. The harvest pace in the largest producing state will depend on how much movement is allowed between States and if workers will want to travel, he said.