Early cane crushing hits sugar recovery in state

Image
Mahesh Kulkarni Chennai/ Bangalore
Last Updated : Jan 29 2013 | 2:54 AM IST

Commencement of early crushing of sugarcane by sugar mills in Karnataka is likely to result in drop of both cane output and recovery of sugar during the current sugar season in the state.

The mills, fearing shortage of cane this year, have started crushing of cane as early as August this year compared to normal commencement in the months of October and November.

This has forced the farmers to harvest the crop early in tune with the requirement of sugar mills and as a result the industry is getting the immature cane for crushing.

According to sugar industry sources, due to the crushing of immature cane the recovery of sugar may come down by 1.5 per cent. Normally, the mills in north Karnataka produce 115 kg of sugar per one tonne of cane crushed and mills in southern Karnataka manage to get 105 kg per tonne.

However, this year, the yield is likely to come down to 100 kg in northern Karnataka and 90 kg in southern Karnataka. The net result of this would be a loss of about Rs 240 per every tonne of cane crushed, said Jagadeesh S Gudagunti, president, South India Sugar Mills’ Association (SISMA).

Assuming that sugar mills crush 19 million tonnes of cane this year, the loss due to low recovery of sugar is likely to result into a net loss of Rs 456 crore during the year 2008-09.

“It is very unfortunate that there is no unity and discipline among the members of SISMA. Despite knowing the ill effects of early crushing most of the mills have commenced crushing in the months of August and September. Harvesting during these months is very unwise and unscientific, causing loss, both to farmers and sugar mills,” he said.

Gudagunti said the sugar mills have resorted to early crushing this year following the fear of shortage of cane for the current year. “Due to scanty rains in the month of June this year, during which period there is a fast growth of sugarcane crop and sucrose contents in it, the growth of cane was affected and yield per acre fell from 50 metric tonnes to 25 metric tonnes all over Karnataka and Maharashtra. By end of the sugarcane year this is likely to result into a drop in the total cane output to an extent of 40 per cent at 19 million tonnes compared to the last cane year,” he said.

He said the early harvest of cane will also affect sprouting of ratoons (a shoot from the root of a plant which results into second crop) and thereby affect the next season crop also.

Due to likely shortage of sugarcane this year, factories in Karnataka have declared higher cane price compared to previous seasons. In north Karnataka factories have announced Rs 1,200 per tonne ex-factory price in addition to Rs 250-300 for harvesting and transportation, while in south, mills will pay Rs 1,100 per tonne ex-factory.

“Mills announced higher price to farmers in anticipation of higher prices for sugar in the coming days. However, the prices of ex-factory sugar is currently hovering around Rs 1,650 per quintal. Though the prices this year are nearly 26 per cent higher than last year’s the mills are likely to post losses,” Gudagunti added.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Nov 19 2008 | 12:00 AM IST

Next Story