Maharashtra, as per the presentation given by the sugar commissioner, has reported production of nearly 14 lakh hectares of cane and the mills are estimated to crush 1,022 lakh tonnes. The government estimates that the state would produce 88.58 lakh tonnes of cane which the industry said can be revised based on the ground situation later. This season, the state would see a drastic reduction in production from the last season’s 105.6 lakh tonnes. It is estimated that 15 lakh tonnes of sugar would be diverted for production of ethanol.

 

While the state government has allowed the season to start from November 1, the availability of cane harvesters can be a problem given the fact that this year Diwali falls on November 15. But most millers said labour would not be a problem mainly due to the drought in various parts of the state. Most labour is sourced from Beed and other districts of Marathwada where soil moisture is not conducive for largescale sowing of rabi crop. “We do not foresee much problem in terms of labour,” said a miller from Sangli.

 

Millers had asked the state government to prevent the export of molasses outside the state which was accepted in the meeting. Last season, a record of 211 mills were operational and had crushed 1,053.91 lakh tonnes of cane. Sugar mills had to pay farmers Rs 35,532 crores as the government-declared Fair and Remunerative Price (FRP) for cane purchased, but till date has paid Rs 35,350 crore. As of now, 26 mills have to clear their dues with the total due being Rs 161.28 crore. Altogether 17 mills had faced action under the Revenue Recovery Code (RRC).

 

Meanwhile, the state government has decided to continue with the previous payment structure of paying the FRP at base rate of 10.25 per cent within 14 days of cane purchase. The extra amount which would depend on the final cane recovery (sugar produced/cane crushed expressed as a percentage) would be paid post the end of the season.