Maharashtra sugar output may by 27%

Aarti Shetty

Mumbai, Dec 9: Maharashtra, one of the main sugar producing zones in the country, is feared to witness a sharp decline of nearly 27 per cent in its sugar production during the current sugar year (October 2001-September 02), say sugar traders. From last year’s 67 lakh tonnes, sugar production in Maharashtra is estimated to fall by 18 lakh tonnes to 49 lakh tonnes.

The decline in sugar production is due to the shortage of sugarcane available for crushing. Sugarcane is normally grown in areas with good water supply. This season, there was less rain in the sugarcane growing belts of north, south and central Maharashtra leading to a fall in the production of sugarcane crop. As against 57.6 lakh tonnes of sugarcane crushed last year, this year only 42.5 lakh tonnes of sugarcane will be available for crushing.

Further, sugar mills in Maharashtra are facing financial losses, thanks to huge carry-over unsold sugar stocks. “Therefore sugar mills are not in a position to pay sugarcane price to the farmers, resulting huge cane arrear amounts,” says a Mumbai-based sugar trader.

Due to the financial instability of sugar mills, it will not come as a surprise if less quantity of sugarcane is crushed this year, leading to lesser sugar output. The sugar industry also fears that if this trend continues, sugar production will drop further next year. The financial difficulties faced by the sugar mills are proving detrimental to the interests of sugarcane growing farmers. According to industry sources, some farmers have already shifted to other crops.