Cane acreage likely to rise 15%

In the backdrop of remunerative prices to sugarcane farmers during the 2009-10 crushing season, cane acreage in the country is likely to increase by 15 per cent for 2010-11.

During 2009-10, the total acreage in the country stood at 4.18 million hectares, of which biggest cane growing states — Uttar Pradesh and Maharashtra — accounted for 1.79 million hectares and 730,000 hectares respectively.

The farmers could fetch prices as high as Rs 300 a quintal this season, while the retail sugar prices were hovering above Rs 45 a few weeks back.

“The cane farmers received better than expected price this season, which will definitely lead to an increase in the cane area by 15 per cent,” UP Sugar Mills Association (UPSMA) secretary CB Patodia told Business Standard.

The total sugar production in India this year is likely to touch 16 million tonnes.

“The sugar production would reach almost 23 million tonnes during 2010-11 on the back of higher cane acreage,” he added.

However, he maintained the current level of cane payments to farmers were not sustainable in the long run.

“The retail sugar prices have already come down and although it would be too early to comment on the level of cane price for next season, the current levels are not sustainable,” Patodia noted.

In UP, the acreage is set to breach the 2 million hectares mark next year, an official source said.

Meanwhile, UP sugar production for 2009-10 has touched almost 4 million tonnes due to higher drawal by sugar units and is set to better last year’s figure of 4.06 million tonnes. Interestingly, the sugarcane area was much lower in 2009-10 compared to 2008-09.

So far, 58 of 128 sugar mills in UP had closed and most others are likely to close by March 10.

The state sugar mills had made advance payments of Rs 370 crore against the cane dues of Rs 6,770 crore so far.