Bitter truth of faltering sugar industry

Hyderabad: It seems that neither farmers nor consumers and even the millers are happy with the crisis that is stifling the sugar industry continues to exist. This, coupled with last year’s drought, reflected its impact on sugarcane production in the State.

As a result, the crushing of sugarcane has almost come to an end this season at a time when the mills should have been in full swing. Normally, the crushing which starts in November ends in March.

 But for the Madhucon and Kakatiya sugar industries both located in Khammam district, all other five functional units – one in Wanaparthy and two each in Sangareddy and Kamaeddy districts - have completed their crushing operations, it is learnt.

Industry sources said that millers this year were able to procure just 11 lakh tonnes against full milling capacity of 36 lakh tonnes. As a result, the production of sugar in the State this season is likely to drop to 1.10 lakh tonnes.

Albeit there is no immediate threat of facing sugar shortage, there is a speculation that the commodity prices would go up. The ex-factory price of the sugar which is around Rs 25 per kg last year is said to be around Rs 35 per kg this year.

Speaking to The Hans India, South Indian Sugar Mills Association (SISMA) secretary R S Bhale Rao said: “Cost of production has already gone up to Rs 40 a kg and it is expected to surge further.”

Having received a good rainfall in 2016 monsoon season, the industry is of the hope that sugarcane yield is likely to reach anywhere close to 30 lakh tonnes, he said, urging the government to encourage the farming further in coming years.

Meanwhile, it is learnt that mill managements are yet to disburse the purchase tax to farmers on the pretext that they did not receive any directions from the government. It may be noted here that government, which levies a purchase tax of Rs 60 per tonne on the sugar mills, has been giving this amount to farmers for the last few years.

All India Kisan Sabha (AIKS) national vice-president Sarampalli Malla Reddy said: “Farmers and consumers are always at the receiving from the government and the millers. The miller is procuring sugarcane at a price of around Rs 2,600 a tonne from the farmers, which is less compared to other States.”

 Stating that Rs 3,500 per tonne is fair and remunerative, he demanded that the millers bear the expenses of cutting and transporting of the crop.