Murugappa Group's EID-Parry has tied up with New Holland Fiat (India) Pvt Ltd to facilitate the mechanisation of sugarcane cultivation in its command area.

The agreement between the two provides for EID-Parry, which plans to bring in over Rs 100 crore over the next 2-3 years on its own and by farmers supplying cane to its mills, to work with New Holland, a manufacturer of agriculture equipment including sugarcane harvesters.

Mr Ravindra Singhvi, Managing Director of EID-Parry, said labour shortage and increasing labour cost is the single largest challenge that the sugar industry is facing.

However, while mechanisation is the obvious solution, initial costs of mechanisation, changes in the agronomic practices that will be needed and the logistics required to keep the equipment in peak working conditions need to be addressed.

Cost of harvest

Cost of sugarcane harvesting has been growing by the season and last year, it touched up to Rs 800 a tonne against the price of about Rs 2,000 a tonne for sugarcane.

With sugarcane harvesters, the company has pegged the cost of harvest at about Rs 360 a tonne, apart from the diesel cost.

However, the initial investment ranges between Rs 80 lakh and Rs 1.5 crore a harvester. Farmers need to be convinced that the changes in cultivation practices will not affect yield.

Equipment

In addition to its own investments in mechanisation, the sugarcane company hopes to encourage large farmers and entrepreneurs to invest in planting and harvesting equipment. In addition to saving on labour costs, it can be a revenue stream for farmers who can hire out the equipment to others.

New Holland will provide the technical know-how and the support structure needed for operation and maintenance of the equipment.

Mr Stefano Pampalone, Country Manager, New Holland, said mechanisation of sugarcane cultivation is happening fast in most growing areas. The company which sold over 30 machines in the last two decades has sold over 300 in the last two years.

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