Nearly 25 mt cane diverted for fodder in Maharashtra

The Maharashtra sugar industry is shocked over rapid diversion of sugarcane for fodder, especially in the drought-hit districts. According to the industry’s calculation, so far, 25 million tonnes (mt) of sugarcane have been diverted as fodder and it fears more diversion would take place if there isn’t any rainfall in the coming days, especially in the 64 talukas where rainfall has been below 25 per cent. However, cane growers are happy to make a fortune as they are getting Rs 2,500- Rs 3,000 a tonne.

Industry sources believe the diversion of 25 mt of sugarcane translates into a three mt loss of sugar production in Maharashtra at the average recovery rate of 11.7 per cent. Maharashtra contributed 8.99 mt of sugar to India’s 26 mt of overall output last year. With the ongoing cane diversion, sugar production in Maharashtra is set to decline to 6.2 mt. Consequently, India’s total sugar output may not surpass 23 mt this year.

An official of the Federation of Cooperative Sugar Factories in Maharashtra told Business Standard, “Our calculation of diversion of 25 mt of sugarcane as fodder is based on daily use of 500,000 tonnes for this purpose for the last 50 days. The situation is really grim, especially when the cane availability for the crushing season 2012-13 in the state will be lower compared to 2011-12, mainly on account of low crop following scanty rainfall. The diversion of standing sugarcane for fodder is adding more problems for the industry.”

The Federation of Cooperative Sugar Factories in Maharashtra is a representative body of over 170 cooperative units in the state.

The official informed that government intervention would be sought to curb the diversion of sugarcane for fodder by requesting the animal husbandry department to opt for green fodder. Besides, the government would be requested to make available alternate animal feed on a priority basis, especially in the drought-hit districts.

“The Federation’s executive committee at its meeting slated for August 23 will also consider financial assistance to tackle this situation,” the official said. According to present estimates only 55 mt of sugarcane would be available for crushing to produce a mere 6.2 mt of sugar in the 2012-13 crushing season. These estimates may further change if the cane growing districts continue to get scanty rainfall.

“In all, 162 sugar units had participated during the 2011-12 season while the number will be reduced by 20 units in the coming season due to inadequate cane,” the official said. The issue would come up for discussion at the meeting of the executive committee of the Federation, slated for August 23. Further, the committee chaired by the chief minister during its meeting on August 29 would also discuss the issue. The committee would take up granting of license to sugar units based on the 50 per cent availability of cane in their respective jurisdiction.