Sugar mills in Maharashtra have crushed around 1.63 million tonne of sugarcane from October 2010 till date in 2010-11 around 50,000 tonne less than last year, even as crushing in Uttar Pradesh, another big sugar producer of the sweetener, has been delayed and is now expected to start only around November 20.

However, the delay in crushing in Uttar Pradesh, home to some of biggest names in Indian sugar sector, is not likely to impact overall sugar production in 2010-2011.

?Maharashtra is pretty much on target as far as crushing in the first month of the season is concerned. However, rain is a cause for concern in places like Kolhapur and Sangli where the fields are wet for harvesting. We will have to wait till the fields are dry,? Prakash Naiknavare, MD, State Cooperative Sugar Factories Federation (MSCSFF) said.

The state is expected to crush a record 8.25 million tonne of cane this season through 163 mills. India is estimated have a sugar output of around 25 million tonne this season with Maharashtra contributing around 9.5 million tonne and 6.4 million tonne coming from UP.

Though 40 mills in Maharashtra have crushing cane, there is a growing unrest in the state over cane prices. For the new season, farmers’ organisations have sought a first installment payment of Rs 2,200 a tonne, ex-field, while millers are willing to just pay the Centre’s fair and remunerative price (FRP), which would average Rs 1,700 a tonne or Rs 1,350 ex-field.

In 2009-10 season, Maharashtra mills paid an average ex-field rate of Rs 2,150 per tonnes, which excluded roughly Rs 350 towards harvesting and transport charges. Two factories in the Kolhapur and Sangli belt have begun crushing this season as against 35 factories that have received licenses for crushing this season, zone-wise data released by MSCFF stated.

Meanwhile, in Uttar Pradesh, cane pricing is threatening to become a major issue with many farmers organisation not agreeing with the state advised price (SAP) fixed by the state government, which is almost 20% more than 2009-2010 at Rs 2000 per tonne.

Sources said in a recent meeting with cane commissioners big sugar mills in western Uttar Pradesh have said that they won’t adhere to the November 15 deadline to start cane crushing as recovery rates are unusually low as compared to price that they would have to pay if SAP is implemented.

At present, mills said that sugar recovery in western Uttar Pradesh is around 7.78%, while it will be viable to start crushing only if average recovery rises to 9%.