Sugar mills unlikely to advance crushing season despite promise to govt: Industry officials

Pune: Most sugar mills in the country are unlikely to advance the crushing season by 15 days to October despite industry bodies promising the government they would do so to ease record-high sugar prices, senior industry officials said. The main hurdle is a shortage of migrant labour, which is typically available only around Diwali in November. Mechanised harvesting is still limited and cannot make up for the shortfall, they said.

The Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Cooperative Sugar Factories Federation had assured the government in a public letter that they will commence the sugarcane crushing season 10-15 days ahead of the normal schedule subject to the prevailing agro climatic conditions. After having already hit record high levels, the sugar prices have been consistently firming up despite government's price control measures like stock limits and physical stock verifications.

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"The harvesting labour will be able to leave their homes only from November first week. It will also depend on whether the sugar mills increase the labour charges," said Gahini Thore Patil, one of the leaders of the sugarcane harvesters from Maharashtra.

Senior officials of the sugar industry told ET on condition of anonymity that the central government has discussed various incentives with the sugar mills for advancing the crushing operations, which include allocating higher sugar sales quota or allowing the sugar mills to sell all the sugar they produce in October.