Monday 1 August 2016

Sugar Production In Maharashtra Drop By 40%

The sugar production in Maharashtra is likely to drop by 40 per cent due to severe drought, coupled with crop diversification, across Marathwada and parts of Western Maharashtra. The projection report July (2016-17) shows the sugar production at 50 lakh metric tonnes. Last season, it was 84.01 lakh metric tonnes. The 34 lakh metric tonne shortfall has raised fears of possible price rise between August and September.


The area under sugarcane cultivation also has shrunk from 10.50 lakh hectares to 7.80 lakh hectares. The primary reason cited for less cane cultivation leading to shortfall in sugar production is drought for the fourth consecutive year.

The Maharashtra State Sugar Federation has urged the Centre and the state to take note of these developments to avert price escalation in the domestic market. Their apprehensions arises from a steep rise in sugar prices at international markets due to low production of sugar.The sugar price in month of July was Rs 3,319 per quintal.

Sources in the Ministry of Cooperation and Marketing said the Centre and the State were working out regulatory mechanism through policy measures to ensure stable sugar prices.A senior officer in the ministry said good rains in July-August would help boost cane cultivation in the next season. 

The onset of festivals beginning from August would peak the sugar demand in the domestic market. Former cooperation and marketing minister and member of the state sugar federation Harshvardhan Patil warned the government to immediately intervene.Patil said, “Apart from the drought, there are policy failures of the government both at the Centre and in the state.”

Citing an example, he said, “The Centre’s decision to withdraw the production subsidy in May was not a good move. Similarly, the aggressive campaign against sugarcane cultivation made the farmers to look for other alternatives crops or horticulture. They switched from cane growing to pomegranate and grapes.” Patil said only 100 out of 200-odd sugar mills would be in a position to operate from October-November if the Centre failed to intervene.

However, a cabinet minister said, “Our government is equally sensitive to the problems of farmers and also consumers. The sugar mills always press the panic button, which is not very realistic.”

The minister said the government had launched the “beyond cane” campaign to encourage farmers to take alternative crops in severe drought-stricken areas. Even water management experts like Madhav Chitale has recommended ban on sugarcane cultivation and new sugar mills in the drought-hit Marathwada.

The Indian Sugar Mills Association report states overall sugar production across India would be 232 lakh metric tonnes. The reduction in overall sugar production is due to production fall in Maharashtra and Karnataka. It projects a marginal increase in Uttar Pradesh from last year’s 23.02 lakh metric tonne to 23.35 lakh metric tonnes.

Maharashtra is among the worst hit registering decline from 84.01 lakh metric tonnes (last year) to present 50 lakh metric tonnes. In Karnataka, it dip from 5.10 lakh metric tonne to 4.15 lakh metric tonnes. However, Tamil Nadu shows increase from 2.50 lakh metric tonne to 2.65 lakh metric tonne.

Source <> http://indianexpress.com/article/india/india-news-india/drought-hit-maharashtra-headed-for-40-drop-in-sugar-production-2946920/

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