Indian sugar mills association

Maharashtra sugarcane acreage likely to decline in 2012-13 due to water shortage

Date:	27 Dec 2011

Source:	The Economic Times

Reporter:	ET Bureau

News ID:	800

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Maharashtra government is fearing a decline in sugarcane acreage in 2012-13 sugar season. The state machinery expects that the farmers will be less inclined to keep the ratoon crop due to scarcity of ground water this year.

Maharashtra co-operation minister Harshvardhan Patil said, "There is possibility of decline in the ratoon crop due to water shortage. We would have a take a call on how many mills should be allowed to crush cane next year or else no one would be able to achieve break-even. "

He was speaking at the annual general body meeting of the Vasantdada Sugar Institute (VSI), Manjri, Pune. The state government expects that the current sugar season of 2011-12 will get over by April-end as the per acre yield of the sugarcane crop has declined by about 10 tonne to 15 tonnes in different regions of the state.

As the labour shortage is worsening, the state government as well as the central government are coming up with schemes of extending financial support to agricultural mechanisation. Maharashtra sugar industry has already purchased more than 82 cane harvesters.

The state government has made Rs 50 crore available from the Rashtriya Krishi Vikas Yojana (RKVY) for subsidising cane harvesters. "Each co-operative sugar factory can get 25% or Rs 25 lakh subsidy per harvester without any restriction on the number of harvesters. We are inclined to give subsidy even for cane planters developed by VSI," said deputy chief minister Ajit Pawar.

Union agriculture minister Sharad Pawar said, "Harvesters will get central assistance under the 12th five year plan." As the sugar prices are moving downward in both domestic as well as international markets, Mr Pawar advised the sugar mills to pay a higher cane price only if they have the financial capacity to do so.

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