With only 6.5 lakh hectares of cane area, the crushing season 2016-17 is supposed to be a short one. Paucity of cane has especially been acute in the districts of Marathwada, Pune and Solapur where millers are now hard-pressed to source cane.
On an average, the first installments announced by millers are Rs 400-600 more than the FRP. In Pune, 10 mills have announced first installment prices above the FRP with the prices ranging from Rs 2,400- 2,550 per quintal of cane crushed.
Mills in this area normally pay FRP in the range of Rs 2,200- 2,300 per quintal of cane crushed. The competition is fierce in Solapur, where millers have adopted the same formula even though the FRP of the region is between Rs 1,664-Rs 2175 per quintal of cane crushed. Millers here have announced the first installment at Rs 2,550 per quintal.
Marathwada has, by far, seen the largest price rush with some millers announcing Rs 900 above their FRP as the first installment price. With just 26 out of 51 mills operational in this region, most of the mills are trying hard to attract cane before the season runs out.
The price war is led by private millers in Marathwada, while both cooperative and private mills are in the price race in Pune and Solapur. The short season and paucity of cane had prompted Swambhimani Shetkari leader Raju Shetti to ask for Rs 3,200 as the first installment payment for cane during his Oosh Parishad (cane conclave) at Jaishingpur, Kolhapur district two months back.
The cane growers had finally agreed to accept price of Rs 175, in addition to the FRP, as their first installment payment. Senior officials from the sugar commissionerate said the price war is basically to attract cane growers.