Indian sugar mills association

AP farmers turn to palm oil, maize as sugar turns bitter

Date:	03 Feb 2012

Source:	The Business Line

Reporter:	K.V.Kurmanath

News ID:	904

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Farmers never lose hope. If one crop fails, they quickly turn to another. Sugarcane growers in Andhra Pradesh, who have declared a crop holiday, are not going to stop farming next season. Instead, they are switching to palm oil, maize and sunflower. Farmers in water-rich Andhra area expect that over 30 per cent of sugarcane area would be converted to these alternative crops. “Palm oil plantation looks lucrative as demand for edible oil is only growing. It has a very long life of up to 20 years, saving the recurring investment costs for farmers,” Mr Sharma, a sugar cane farmer from Krishna district, told Business Line. Mr O.P. Goenka, an expert on edible oil industry and former President of the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), acknowledges this development. “We are hearing this from farmers. This augurs well for the country that is spending huge amounts of foreign exchange on edible oil imports. We do not however know how much of land is being shifted to palm oil. This will go a long way in sourcing edible oil domestically,” he said. Conflicting views While the Government is claiming that sugarcane area has gone up by 11 per cent following huge gains from ratoon crop (crop from sprouts of previous crop), farmers say that the reality is completely different. “Sugarcane farmers are not happy. They are disgusted with negative returns. They are looking at alternatives. Some of them have already switched,” Mr Sharma said. Sugarcane was grown in 2 lakh hectares in 2010-11. Despite a fall of 23 per cent in plantation that shrunk the fresh area to 82,000 ha (1.07 lakh ha), growth of 65 per cent in ratoon crop at 1.18 lakh ha (71,622 ha) increased overall area, the Government argued. The State Agricultural Plan for 2011-12, however, pegged the area down at 1.70 lakh ha. Maize, sunflower in Telangana Telangana, the major sugarcane growing area, too is witnessing a shift. “They are looking at sunflower and maize as alternatives in Telangana. Sugar factories here are struggling to get cane here this season itself,” Mr P. Appireddy, Convener of Telangana Sugarcane Farmers` Association, said. According to him, sugarcane area in the State plummeted to sub-one lakh hectares level from about 2.40 lakh hectares in 2006-07. Farmers` organisations have projected a total crushing of 110 lakh tonnes of cane this year as against 120 lakh tonnes last year. “Next year, it could touch 70 lakh tonnes, severely impacting production of sugar. Plantation in almost areas under almost all sugar factories has come down,” Mr Sharma said.

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