The Hindu Business Line : Empee Sugars plans corporate farming of cane

Chennai, Aug. 21 Empee Sugars and Chemicals Ltd, which is putting up a Rs 515-crore integrated sugar mill complex in Tirunelveli in Tamil Nadu, is planning corporate farming of sugarcane apart from the traditional tie-up with farmers.

The company is setting up a mill with capacity to crush 5,000 tonnes sugarcane a day with a provision to expand to 8,000 tonnes, a 100 kilolitre a day distillery and a 50 MW cogeneration plant.

The company has a sugarcane command area covering six taluks in Tirunelveli district from where it can buy sugarcane from farmers. There is over 3.8 lakh acres of cultivable land and 2.2 lakh acres of irrigable land in the area.

However, according to Mr K. Jayachandran, Joint Managing Director, Empee Sugars, sugarcane is not traditionally cultivated there but the company is using this opportunity to launch a modern system of sugarcane cultivation including mechanisation, drip irrigation, apart from corporate farming on leased lands and large farms.

This would help support high yields of more than 50 tonnes an acre needed to supply adequate sugarcane for the initial capacity and the proposed expansion to 8,000 tcd in the second year of operations. The company plans to commission the mill by November 2009 for which it needs at least 20,000 acres of sugarcane under cultivation by November this year and over 40,000 acres from the second year.

Corporate farming

Initially, Empee is going for a mix of 10,000 acres of corporate farming in large farm holdings of 50-100 acres and lands taken on long lease of at least five years from farmers. The balance 10,000 acres would be the routine tie up with farmers.

The company has raised over 1,200 acres seed cultivation — sugarcane setts — and by September, another 800 acres would be available. This would be sufficient to start 20,000 acres of sugarcane cultivation by the year end.

Drip Irrigation

Being a new area for sugarcane, the company is pushing for mechanisation and supporting farmers in starting cultivation routines that would support mechanised planting, weeding and harvesting. The company is also importing harvesters and plans to introduce mini tractors for weeding. Empee Sugars has tied up with large drip irrigation companies Netafim and Jain Irrigation for providing subsoil drip irrigation systems.

Cogeneration

Empee Sugars has applied to the Tamil Nadu Electricity Board for third party sale of power from the 50 MW cogeneration facility. It is in discussions with power trading entities such as Tata Power, Lanco and Reliance for selling surplus power. While TNEB pays a tariff of about Rs 3.15 a unit, third party buyers often pay up to Rs 5 a unit, Mr Jayachadran said.

Empee Sugars is a part of a diversified group with a presence in sugar, liquor, hospitality and real estate. The company operates a 3,000 tcd sugar mill and 30 klpd distillery in Andhra Pradesh and is setting up a 20 MW cogeneration unit and adding 500 tcd sugarmill capacity at a cost of Rs 76 crore. It has a license to expand the distillery to 85 klpd.

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