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News
Shorter season likely on lower cane supply
Date:
18 Oct 2016
Source:
The Financial Chronical
Reporter:
Prabhudatta Mishra
News ID:
6068
Pdf:
Nlink:
Maharashtra mills seek nod to start crushing from November 1
Sugar mills in Maharashtra may be allowed to start their factories a fortnight before schedule, as delayed crushing of sugarcane may result in lower output.
Some mills have sought permission to start crushing cane from November 1, earlier than the government announced December 1 cut off date, according to an industry official. However, sources said the state government may allow some mills to start operation from November 15.
A group of ministers may soon decide the change in date, sources said, adding that only those mills, which do not have cane arrears for the last season, may be allowed to run their factories earlier than the scheduled date.
Maharashtra was the largest producer of sugar in 2015-16. But due to two consecutive drought years, sugar production during 2016-17 season (October-September) is estimated to decline to 6.27 million tonnes, 25 per cent lower from 8.41 million tonnes in the previous year, according to Indian Sugar Mills Association (ISMA) data. Traders and millers expect production to be at about 5 million tonnes.
The total cane acreage in Maharashtra is estimated to be 8.10 lakh hectares, down 23 per cent compared to last year, ISMA said. It is estimated that the yield may be at the same level as that of last year as the state has received 5 per cent more than normal rainfall this season, thus increasing water availability in all major reservoirs. This will help irrigate sugarcane crops. The sugar recovery will, however, drop marginally to 11.05 per cent from 11.3 per cent last year, according to ISMA.
Farmer leader and MP Raju Shetti last week met chief minister Devendra Fadnavis, urging crushing season be allowed to start from November 1. He said any delay would affect the weight of sugarcane.
There won’t be any problem if mills in the Kolhapur belt are allowed to start crushing from November 1, said an official of Maharashtra State Cooperative Sugar Factories Federation. Good amount of water is available in these areas, the official said. In Kolhapur region, more than 40 mills have applied for crushing. There are about 190 cooperative sugar mills in the state.
Farm activist Kishor Tiwari, who authored a study commissioned by the state government on crop mitigation measures in drought-affected areas, had recommended in April to completely replace sugarcane and Bt cotton in 14 districts of drought-hit Vidharbha and Marathwada regions. He also advised to stick to a particular crushing schedule.
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