Sugar, sugar it's like being caned

MUMBAI: It’s a problem of plenty for the sugar sector in Maharashtra. The state might have outstripped US in sugar production, but the large quantity of uncrushed sugarcane lying around, even after the end of the season, has politicians scrambling for yet another financial package for farmers.

The US produced close to 78 lakh tonnes of sugar this year, while the production in Maharashtra is set to exceed 100 lakh tonnes. This phenomenal output will also help India close in on the No 1 sugar producer in the world, Brazil.

“India’s total sugar production this year will be nearly 307 lakh tonnes, while Brazil will produce 325 lakh tonnes,” said Vinay Kore, one of the leading sugar barons of the state who heads the Warana group of companies and is also a minister in the Vilasrao Deshmukh cabinet.

This year, the country has also surpassed the previous world record production of 305 lakh tonnes achieved by Brazil in 2004-05. China is the third in sugar output; but this year, India is way ahead of China, whose production is expected to be around 122 lakh tonnes.

“This excess production has caused a glut in the market,” Mr Kore said. All political parties are now rallying behind the farmers. The Sena-BJP combine already has demanded a higher compensation, of Rs 50,000 per hectare, for sugarcane growers.

Now, in an attempt to be seen as doing their bit for an industry facing a glut, the Maharashtra Congress has demanded a compensation of Rs 60,000 per hectare for farmers whose produce has remained uncrushed.

“The Centre and the state government need to take some urgent steps,” the Congress feels. No sugar factory is in a position to pay the mandatory statutory minimum price of sugarcane to farmers, the report said.

The committee members — former MLC Kanhaiyalal Gidwani, former MP Dada Patil Shelke and former director of the Food Corporation of India (FCI) Manikrao Ambegaonkar — along with MPCC president Prabha Rau recently called on the chief minister and submitted the report.

Ms Rau said the government has already announced an assistance of Rs 25,000 per hectare for uncrushed cane during the budget session. “We hope that it will increase the assistance to Rs 60,000 per hectare. Sensing the popular mood, the chief minister, himself a sugar baron, has decided to lead a delegation to Prime Minister Manmohan Singh to seek financial assistance.

“We are planning to meet the PM and apprise him of the crisis,” he said. The state government has already approved a Rs 131-crore financial package. Mr Deshmukh argued that it would not be feasible for the state government alone to handle the crisis.