Sugar, sugarcane: India

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This is a collection of articles archived for the excellence of their content.

Contents

Cultivation

2013- 2016: decline in Karnataka

H.S. NARASIMHA KUMAR, Sugarcane cultivation sees major decline, March 14, 2017: The Hindu


Growers discouraged by government’s failure to get them remunerative prices

The Karnataka State Sugarcane Growers’ Association has said that there has been a substantial decline in sugarcane cultivation in Karnataka. It noted that in 2013, sugarcane was grown across 9.5 lakh hectares, while in 2016, it was grown across just three lakh hectares in the State.

If the government failed to encourage cane growers by giving them interest free loans and through scientific pricing, they would stop cultivating the crop and sugar factories may have to be shut, it stated.

Kuruburu Shanthkumar, president of the association, told reporters here on Monday that even the number of farmers cultivating sugarcane had reduced considerably in the State. He said that cane growers were discouraged by the failure of the government to get them remunerative prices. The government would get a tax of Rs. 3,000 per tonne sugarcane and the sudden fall in production had resulted in heavy losses to the State exchequer, he said.

The FRP (Fair and Remunerative price) which was fixed at Rs. 2,200 per tonne in 2014-15 has not been enhanced for three years though prices of sugar had touched Rs. 50 per kg, Mr. Shanthkumar said adding that farmers were incurring couple of hundred rupees losses for each tonne of cane that they had grown instead of earning the same in profits.

The association has urged the Union government to implement the recommendation of the M.S. Swaminathan committee forthwith. He urged the State government to give crop loss compensation of Rs. 25, 000 per acre to farmers who have incurred crop loss owing to drought in the State in the past two years.

Mr. Shanthkumar also urged the government to waive off all farm loans to prevent farmers resorting to drastic measures. He said that it was high time the government realised that the farmers were made to incur losses in the absence of a system to get remunerative prices for agriculture produce.

Why farmers stick to cane despite due/ 2019

Satyajit Joshi, Vivek Waghmode & Sandeep Rai, Why farmers stick to cane despite dues, January 29, 2019: The Times of India


Mills Owe ₹8,200cr To Farmers In UP Alone But Peasants Not Likely To Switch To Other Crops

Unrest simmers in districts of western Maharashtra and parts of UP, the sugar bowls of India, over unpaid cane dues. But despite the problems which beset farmers, they have continued to cultivate a crop that means more to them than just livelihood.

Anger among farmers in Maharashtra spilled out into the streets on January 12. A mob gathered outside Kranti Sugar Factory in Sangli and Krishna Sugar Factory in Satara and set the office gates on fire. Four other factories were ransacked. There were fresh protests on Monday too.

Farmers in western Maharashtra have cultivated sugarcane for decades, thanks to the fertile land, ample water and “assured money”. The government announces a fair and remunerative price (FRP) every year that mills must pay farmers after purchasing cane. The mills have, however, struggled to do so for many years. This crushing season alone, since October 2018, mills owed Rs 4,576 crore to farmers till December 9.

The violence came hours after farmers got to know that private and cooperative sugar factories had unilaterally deposited 80% of the payment in their bank accounts --Rs 2,300 per tonne when the FRP is Rs 2800 per tonne.

Pradip Godase, a farmer in Sangli, said, “It’s true we have to fight for FRP every year, but sugarcane is the only crop that usually gives us assured returns. It also provides fodder and cattle-rearing becomes our second occupation.” They also spend less on pesticides and fertilisers compared to other crops.

This loyalty to the crop can also be seen in UP. A staggering Rs 8,200 crore in dues was to be paid by mills to farmers by the end of 2018. A glut in sugar production meant prices dropping below the breakeven mark for mill owners. One would assume that with payments stuck, they would switch to another crop.

There’s no chance of that happening anytime soon. For farmers, especially in western UP districts of Baghpat, Bijnor, Muzzafarnagar, Shamli, Bulandshahr and Meerut, being identified as a cane cultivator is a matter of pride that cannot be compromised. “We have more respect than someone who grows vegetables, which needs less land but greater amount of manual labour,” says Bijnor farmer Virender Singh.

In September 2018, UP CM Yogi Adityanath advised farmers to “grow other crops as too much sugar leads to diabetes”. It’s an advice farmers in the area take with a pinch of salt. “Sugarcane is the crop of our forefathers and we are carrying forward the legacy. Why would we grow anything else?” said Virender.

It is this persistence that has seen the area under cane cultivation in UP increase from 22.9 lakh hectare in 2017 to 26.7 lakh hectare in 2018.

Ashok Kumar, director (research) at Meerut’s Sardar Vallabh Bhai Patel Agriculture University, said, “Pride about cane cultivation is visible among those with large land holdings, who can absorb delays in payment. Many are confident they will get paid sooner or later.”

Naveen Pradhan, a Meerut farmer, added, “Besides, the crop needs very little maintenance, is robust and can survive inclement weather. In worst-case scenarios, the loss is never more than 10%. In wheat, there might be a 30% to 40% loss sometimes.”

2018: growing sugarcane despite factories’ defaults

Vivek Waghmode, Sandeep Rai and Satyajit Joshi, January 30, 2019: The Times of India


2018: growing sugarcane despite factories’ defaults
The status in Maharashtra
From: Vivek Waghmode, Sandeep Rai and Satyajit Joshi, January 30, 2019: The Times of India
2018: growing sugarcane despite factories’ defaults
The status in UP
From: Vivek Waghmode, Sandeep Rai and Satyajit Joshi, January 30, 2019: The Times of India

Unrest simmers in districts of western Maharashtra and parts of Uttar Pradesh, considered the sugar bowls of the country, over unpaid cane crushing dues. Despite the problems which beset farmers, however, they have continued to cultivate a crop that means more to them than just livelihood.

Anger among farmers in Satara, Sangli and Kolhapur districts of Maharashtra over unpaid dues spilled out into the streets on January 12. A group of unidentified persons gathered outside Kranti Sugar Factory in Sangli district and Krishna Sugar Factory near Karad in Satara district and set the office gates on fire. Four other factories were ransacked and forcibly shut down. The matter of unpaid dues remains a simmering issue in the runup to Lok Sabha and state assembly issues this year.

Farmers in the western part of Maharashtra have cultivated sugarcane for decades thanks to the fertile land, ample water and most importantly assured money. The government announces a fair and remunerative price (FRP) every year that sugar mills must pay farmers after purchasing cane from them. The mills have, however, struggled to pay farmers for the past many years. This crushing season alone, since October 2018, mills owed Rs 4,576 crore to farmers till December 9.

The violence occurred hours after farmers came to know that most private and cooperative sugar factories had unilaterally deposited 80% of the payment in their bank accounts. Rs 2,300 per tonne was deposited in the bank accounts of farmers while FRP is Rs 2,800 per tonne.

It is mandatory for factories to make full payment to the farmers within 14 days after cane is taken for crushing. However, this partial payment was made after three months and a warning from the sugar commissionerate. Pradip Godase, farmer from Walva taluka of Sangli district, said, “It is true that we have to fight for FRP every year, but sugarcane is the only crop that gives us assured returns. We do not suffer losses after cultivating sugarcane. Besides, sugar cultivation also provides fodder and cattle-rearing becomes our second occupation.”

Sandip Mote, who has cane farms in Tandulwadi village of Kolhapur, said, “We also spend less on pesticides and fertilisers on its cultivation as compared to other crops. Sugarcane crop can also survive flooding, waterlogging or dry climate for a month.” This loyalty to the crop, despite the ongoing crisis, can also be seen in Uttar Pradesh. A staggering Rs 8,200 crore in cumulative dues was to be paid by mills to farmers in the state by the end of 2018. A glut in sugar production this year has meant prices dropping below the break-even mark for mill owners. One would assume that with farmers’ payments getting stuck — something which they have been facing almost every year — they would switch to cultivating another crop.

There is no chance of that happening anytime soon. For farmers, especially those in western UP districts of Baghpat, Bijnor, Muzzafarnagar, Shamli, Bulandshahr and Meerut, being identified as a cane cultivator is a matter of pride that cannot be compromised. “A cane farmer has more respect than someone who grows vegetables, which needs less land but greater amount of manual labour,” says Bijnor farmer Virender Singh.

In September 2018, UP CM Yogi Adityanath while addressing farmers in Baghpat had advised them to “grow other crops as too much sugar leads to diabetes”. It’s an advice that farmers in the area take with a pinch of salt. “Sugarcane is the crop of our forefathers and we are carrying forward the legacy. Why would we grow anything else?” said Virender indignantly.

It is this persistence that has seen the area under cane cultivation in the state increase despite the problem of unpaid dues, from 22.9 lakh hectare in 2017 to 26.7 lakh hectare in 2018.

Ashok Kumar, director (research) at Meerut’s Sardar Vallabh Bhai Patel Agriculture University said, “Pride about cane cultivation is particularly visible among those with large land holdings, who can absorb delays in payment. Many farmers are confident they will get paid sooner or later.”

There are other reasons for the continued popularity of sugarcane farming. A robust infrastructure is in place in UP — sugar mills are conveniently located, collection centres are present in each village and there is a minimum price guaranteed. “Besides, the crop needs very little maintenance, is robust and can survive inclement weather. In worst-case scenarios, the loss is never more than 10%. If I were to cultivate wheat, there might be a 30% to 40% loss sometimes,” said Naveen Pradhan, a Meerut farmer.

Because of the huge vote bank that UP’s 45 lakh sugarcane farmers represent, the crop is intertwined with state politics. The state advised price, which is the minimum sugar mills have to give to farmers, is often increased marginally by the state government during an election year to give the ruling party an edge, as was done by the BJP government in 2018. The issue of pending dues is also raised by the opposition to embarrass the party in power. This was one of the reasons attributed to the defeat of BJP in the Kairana Lok Sabha bypoll in May 2018 (which included the assembly constituency of the state cane minister). With barely a few months for the 2019 general elections and the issue of farmers’ dues still simmering, sugarcane could yet again occupy centrestage in the UP political arena.

Why farmers stick to cane despite due/ 2019

Satyajit Joshi, Vivek Waghmode & Sandeep Rai , Why farmers stick to cane despite dues, January 29, 2019: The Times of India

Mills Owe ₹8,200cr To Farmers In UP Alone But Peasants Not Likely To Switch To Other Crops

Unrest simmers in districts of western Maharashtra and parts of UP, the sugar bowls of India, over unpaid cane dues. But despite the problems which beset farmers, they have continued to cultivate a crop that means more to them than just livelihood.

Anger among farmers in Maharashtra spilled out into the streets on January 12. A mob gathered outside Kranti Sugar Factory in Sangli and Krishna Sugar Factory in Satara and set the office gates on fire. Four other factories were ransacked. There were fresh protests on Monday too.

Farmers in western Maharashtra have cultivated sugarcane for decades, thanks to the fertile land, ample water and “assured money”. The government announces a fair and remunerative price (FRP) every year that mills must pay farmers after purchasing cane. The mills have, however, struggled to do so for many years. This crushing season alone, since October 2018, mills owed Rs 4,576 crore to farmers till December 9.

The violence came hours after farmers got to know that private and cooperative sugar factories had unilaterally deposited 80% of the payment in their bank accounts --Rs 2,300 per tonne when the FRP is Rs 2800 per tonne.

Pradip Godase, a farmer in Sangli, said, “It’s true we have to fight for FRP every year, but sugarcane is the only crop that usually gives us assured returns. It also provides fodder and cattle-rearing becomes our second occupation.” They also spend less on pesticides and fertilisers compared to other crops.

This loyalty to the crop can also be seen in UP. A staggering Rs 8,200 crore in dues was to be paid by mills to farmers by the end of 2018. A glut in sugar production meant prices dropping below the breakeven mark for mill owners. One would assume that with payments stuck, they would switch to another crop.

There’s no chance of that happening anytime soon. For farmers, especially in western UP districts of Baghpat, Bijnor, Muzzafarnagar, Shamli, Bulandshahr and Meerut, being identified as a cane cultivator is a matter of pride that cannot be compromised. “We have more respect than someone who grows vegetables, which needs less land but greater amount of manual labour,” says Bijnor farmer Virender Singh.

In September 2018, UP CM Yogi Adityanath advised farmers to “grow other crops as too much sugar leads to diabetes”. It’s an advice farmers in the area take with a pinch of salt. “Sugarcane is the crop of our forefathers and we are carrying forward the legacy. Why would we grow anything else?” said Virender.

It is this persistence that has seen the area under cane cultivation in UP increase from 22.9 lakh hectare in 2017 to 26.7 lakh hectare in 2018.

Ashok Kumar, director (research) at Meerut’s Sardar Vallabh Bhai Patel Agriculture University, said, “Pride about cane cultivation is visible among those with large land holdings, who can absorb delays in payment. Many are confident they will get paid sooner or later.”

Naveen Pradhan, a Meerut farmer, added, “Besides, the crop needs very little maintenance, is robust and can survive inclement weather. In worst-case scenarios, the loss is never more than 10%. In wheat, there might be a 30% to 40% loss sometimes.”

2020: 123 lakh tonnes, a record

Pankaj Shah, May 23, 2020: The Times of India

While most industries faced a Corona-induced lockdown, UP’s sugar mills went full throttle to produce 123 lakh tonnes of sugar in this crushing season, recording their highest ever output, which is also a record production by any state in a season. In UP, the sugarcane crushing season is from October to May.

Records available with the sugar department till May 21 show that the output so far is at least six lakh tonnes more than 117 lakh tonnes of sugar produced in the corresponding period of the last season. UP’s previous record was registered in the 2017-18 season with an output of 120.45 lakh tonnes of sugar. The output is all set to increase further as 39 of the total 119 sugar mills are still running as nearly 10 more days are left in this crushing season. In contrast, only 16 mills were operating after the third week of May last year.

Significantly, while UP jacked up its production despite the lockdown, the national production of sugar in this season fell by nearly 62 lakh tonnes - from 326 lakh tonnes in the previous season to 264 lakh tonnes. UP accounts for 47% of the total national output so far.

According to Indian Sugar Mills Association, about 40% of the factories in central UP are still operating, while in west UP about 70% of the factories are still running. Principal secretary, cane development, Sanjay Bhoosreddy said that despite the lockdown, the state government ensured that the mills kept operating to crush canes brought in by farmers.

In the current crushing season, the state government paid farmers nearly Rs 19,000 crore, which is 56% of the total dues.


2022- 23

First advance estimates for sugar season, 2022-23
From: February 11, 2023: The Times of India

See graphic:

First advance estimates for sugar season, 2022-23

Exports

2010-19

India’s sugar Exports, 2010-19
From: Dec 18, 2019 Times of India

See graphic: India’s sugar Exports, 2010-19


Rise in sugar exports

2021- 22

Dipak Dash, January 24, 2023: The Times of India


New Delhi : More than 10-fold increase in ethanol production in the past nine years and over 20-times rise in sugar exports in the last six years have helped India’s sugar mills to become “self reliant” and also make faster payment of dues to farmers.

The government data show that sugarcane dues for 2020-21 and 2021-22 seasons have reduced to barely 0. 1% and 2%, respectively.


This was not the case a few years back. Dues of farmers had been pending for years as sugar mills were struggling with their finances and protests for payment of arrears were very common in major producing states. 
In a presentation, joint secretary in the food ministry, Subodh Kumar Singh, said against the Rs 93,075 crore dues payable to sugarcane farmers for 2020-21 season, the millers have paid Rs 92,987 crore and barely Rs 88 crore is pending. Similarly for 2021-22, farmers received payment of Rs 1. 16 lakh crore and Rs 2,310 crore was pending. October to September is treated as sugar season as the production of the sweetener starts from October.


The food ministry said several steps taken by the government have helped the industry and farmers as well, including the setting of minimum selling price of sugar at mills to prevent cash loss to mills, diversion of access sugar to ethanol and incentive for export of excess sugar out of the country.


Official details show tha t since 2014,sugar mills and distilleries have generated about Rs 77,000 crore from sale of ethanol to oil marketing companies (OMCs). The production of ethanol and i ts supply to OMCs has increased from 38 crore litres to 408 crore litres between 2013-14 and 2021-22. “There has been a complete transition of the sugar industry from food sector to energy sector,” the food ministry said in its presentation.

Similarly, to deal with the glut of sugar, the government has so far provided assistance of Rs 18,000 crore to mills to facilitate buffer stock and export of surplus sweetener. Now since the export of sugar has become viable for the industry, the government is not providing any financial assistance. Sugar export has gone up from less than 50,000 tonne in 2016-17 sugar season to 110 lakh tonnes in 2021-22. For the current financial year, the government has allowed the export of 60 lakh tonnes. Union food secretary Sanjeev Chopra said this week that the government will take a decision next month on increasing the sugar export quota after assessing the domestic production and internal demand.

India and the world

2015-19

Indian sugar production and exports and the world, 2016-19
Sugar consumption in India, 2011- 21
From: May 26, 2022: The Times of India

See graphic:

Indian sugar production and exports and the world, 2016-19
Sugar consumption in India, 2011- 21

Prices

2016> 2017

Retail sugar prices in Jan 2016 and Jan 2017; The Times of India, Jan 22, 2017


See graphic:

Retail sugar prices in Jan 2016 and Jan 2017

Production

1993-2018

Dipak Dash, India set to beat Brazil in sugar output after 15 yrs, November 22, 2018: The Times of India


India is set to push Brazil to second position in sugar production during 2018-19 after 15 years. India’s sweetener production is estimated to touch 35.9 million tonnes (MTs), registering an increase of about 5.2% over last year, according to the latest report of the US Department of Agriculture (USDA).

The report by USDA’s Foreign Agricultural Service wing released on Tuesday has estimated Brazil’s sugar production to dip by 8.3 MTs and bringing its total production to 30.6 MTs during this sugar year.

It says the 21% drop in sugar manufacturing is primarily “due to lower sugarcane yields and more sugarcane being diverted towards ethanol production as record global sugar supplies have led to weak prices”.

The global production of the sweetener is also estimated to tumble to nearly 185.9 MTs, which is about nine million tonnes less than last year, mainly attributed to Brazil cutting down its sugar manufacturing.

Attributing that the higher area and yields in India would boost the production of sugar in the country , the report said consumption is also forecast at a record 27.5 MTs due to a growing population and strong demand from food processors.

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Farmers, cultivators and their issues

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