Karnataka sugar mills face 40-60 per cent cane shortage

Sugar mills in Karnataka are facing a severe shortage of sugarcane ranging from 40 per cent to 60 per cent during the current sugar season (October 2008 to September 2009). As a result of which mills are likely to suspend their crushing operations at least 2-3 months ahead of the scheduled closure.

According to an estimate by South Indian Sugar Mills Association (SISMA), as of February 15, mills in Karnataka are likely to crush a cumulative 16.5 million tonnes (MT) of sugarcane during the current season, about 40 per cent less than last year. The shortage is seen mainly on account of switching of crop pattern by the farmers owing to lower price realisation during the last sugar season and diversion of cane towards jaggery production this year.

Sugar production from the state is likely to drop by 41 per cent to 1.7 MT during the year compared to last year. The sugar recovery percentages are also estimated to be lower marginally to 10.3 per cent across the state compared to 10.8 per cent last year.

The yield per acre has also dropped during the current year from around 40 tonnes to 25-30 tonnes as many mills advanced their crushing operations this year and crushed mainly immature cane.

“At the beginning of the season, mills feared that there will be a shortage of cane this year and commenced crushing operations ahead of normal schedule. As a result of this they ended up crushing immature cane and naturally the recovery has dropped. The situation for the next year may not be any different from the present year as not many farmers have planted fresh crop,” a SISMA official said.

Already, 15 out of 50 mills that were operational this year, have suspended their crushing operations barely four months after the start of the crushing season. The SISMA expects that the entire crushing for the current season will be completed by end of March this year. As on February 15, mills in the state have crushed 14 MT of cane and produced 1.42 MT of sugar at a recovery of 9.8-10 per cent.

For the current season, mills in Karnataka have paid farmers cane price of Rs 1,100-1,200 a tonne and in north Karnataka another Rs 250 a tonne is paid towards harvest and transportation charges.