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Harish Damodaran

New Delhi, Nov. 7

Even as growers in Uttar Pradesh (UP) are up in arms against the Centre’s Fair and Remunerative Price (FRP) policy, crushing in the other major cane State of Maharashtra is on in full swing.

As on Saturday, 40 out of Maharashtra’s 140 operational mills had started functioning in the new 2009-10 season (October-September), crushing 10.09 lakh tonnes (lt) of cane and producing 0.93 lt of sugar. Last year, during this time, 51 mills had taken the season, crushing 14.36 lt cane and producing 1.33 lt sugar. “This time, due to elections and Diwali, the season began 15 days late on November 1. But on the whole, we expect to crush 10 lt more cane than the 400 lt in 2008-09, with sugar output and recovery being higher at 48 lt (46 lt) and 11.75 per cent (11.50 per cent), respectively”, Mr Prakash Naiknavare, the Managing Director, Maharashtra Cooperative Sugar Factories’ Federation, told Business Line.

Unlike in UP, the FRP has not been an issue in Maharashtra. The Centre’s FRP of Rs 129.84 a quintal for the current season is linked to a sugar recovery of 9.5 per cent. Since recoveries in Maharashtra, at 11.5-12 per cent, are above UP’s 9.5-10 per cent, the FRP works out to be pretty decent. Taking last season’s 11.5 per cent recovery, the average FRP in Maharashtra comes to Rs 157.24 a quintal. Moreover, mills have, this time, declared an average ‘advance’ cane price of Rs 175 a quintal. If one adds harvesting and transport (H&T) charges, the gate-delivered price (corresponding to the FRP) would be upwards of Rs 200 a quintal.

Some factories in Kolhapur have announced an even higher advance price of Rs 210 a quintal, excluding H&T charges. “In 2008-09, the final cane price, inclusive of H&T charges, averaged Rs 185 a quintal. This time, even without including H&T, factories may end up paying Rs 230-250 a quintal”, Mr Naiknavare added.

More Stories on : Sugar | Agricultural Policy | Maharashtra

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