This story is from October 11, 2014

Uncertainty looms over cane-crushing season in sugar belt

The usual buzz of negotiations on sugarcane pricing is missing from the sugar belt this October, the only noise around the lush green sugarcane fields being that of political rallies.
Uncertainty looms over cane-crushing season in sugar belt
SATARA: The usual buzz of negotiations on sugarcane pricing is missing from the sugar belt this October, the only noise around the lush green sugarcane fields being that of political rallies. Officially, the sugarcane crushing season begins on October 15, the day Maharashtra goes to polls. However, ground reality indicates crushing may not start before December 1.
While harvesting usually begins in November, this year it could get pushed by a month. While the Union government has announced the fair and remunerative price (FRP) for sugarcane, mills are awaiting the sugar board's formation in the state which will eventually decide the final price. Waiting patiently are scores of sugarcane farmers and migrant workers whose livelihoods revolve around the crop.
The Pune-Kolhapur highway is flanked by seemingly endless farmlands with a ready-to-harvest sugarcane crop. "I have a five-acre farmland. Each acre produces 40 tonne sugarcane, which fetches me around Rs 80,000. If we wait long to harvest, the crop's weight drops as its water content dries up in the sun," said Vilas Lakshman Babar, a farmer in Kikli village in Wai taluka of Satara. Visiting Babar on Friday was the Maharashtra Navnirman Sena (MNS) candidate from Wai, Mayur Prakash, who has promised "perfect price" to sugarcane farmers in his manifesto. Also singing the development tune were Congress loudspeakers mounted on lorries moving near farmlands here.
The 'cutting' price too remains undecided. Migrant workers, mainly from Beed, say it's a bad year for them. "Gopinath Munde protected our labour price. Now we are not sure what rate we will get," said Mahadeo Dondiba Shikari, who hails from Jamkhed in Beed and moved to Satara to harvest the sugarcane crop. He says he may not go to his hometown to cast his vote as the leader who protected his livelihood is no longer there. Until last year, Shikari made Rs 270 for each tonne of sugarcane he harvested and Rs 300 or more if the crop was deep into the farmlands.
If in Wai and Satara constituencies, farmers appeared visibly fed up with NCP and Congress, in Prithviraj Chavan's constituency, Karad, farmers said their loyalties were with the former CM, but hoped the pricing would swing in their favour. "We want Rs 2,700-2,800 per tonne, but we might get only Rs 2,400 or Rs 2,500,"said Balkrishna Baburao Thorat, who owns a two-acre sugarcane farmland in Karve village in Karad.
The voice of sugarcane farmers of many years, Raju Shetti, founder president of Swabhimani Shetkari Sanghatana, is now awaiting the sugar board's decision. When told the board has only been approved but not been set up yet, he said, "There will be a ganna parishad meeting on November 1." He listed "no government in state, mill owners busy contesting elections, and workers away for Diwali" as reasons for the pricing issue put on hold.

The delay in harvest could have a cascading effect, said Vijay Kakade, economics professor in Shivaji University. "The real loser is the farmer as the crop's sugar content will drop with the delay and it would weigh less. Also, crushing would continue till water-scarce month of May," he said.
A price war is set to unfold as the government wants sugar mills to follow the centre's FRP, and mills resisting it. Vinay Kore, chairman of Warna group, said the government's FRP was Rs 2,542 per tonne (given the state's average sugar recovery of 11.5%) would have no takers. He added by the time the government formulates the new board, which would comprise farmer representatives, mill owners among others it would be November 20-25, and the board's decision too wouldn't be binding. Kore is also contesting the election from his own party, Jan Surajya Shakti Party.
Rajagopal Devara, secretary, co-operation, however, maintained that factories had no choice but to pay the FRP and last year the first instalment of the payment they made to the farmers was as per the FRP. "The season has not been impacted. Once the new government is formed, crushing will start from November 1. This would be one of the first major decisions the new government will take," he said.
Sanjeev Babar, managing director of Maharashtra State Federation of Cooperative Sugar Factories, dispelled concerns over sugar recovery and delayed harvest impacting crop quality. He said the average recovery of 11.45% would be maintained. "Sugar factories will pay FRP to farmers once they commence crushing. Let the board's decision come, but FRP is the best solution," he said.
However, P G Medhe, consultant to Rajaram Cooperative Sugar Factory, feared that if the decision on price was delayed, harvesting could be pushed to December. This could lead to many problems, Medhe said.
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