Maharashtra Farmers Demand Higher Sugar Prices Amid Protests
Thousands of sugarcane farmers rally in Kolhapur, pushing for better prices and relief from government policies.
Farmers demand a minimum selling price of Rs.50 per kg for sugar.
Protests highlight ongoing issues in the sugar industry, including drought and rising costs.
Government's ethanol procurement policies face backlash from farmers.
On October 25, a significant protest took place in Kolhapur, Maharashtra, where thousands of sugarcane farmers participated in a 185-km bike rally led by Raju Shetti of the Swabhimani Shetkari Sanghatana. The farmers are advocating for a minimum selling price (MSP) of Rs.50 per kg for sugar and a first installment payment of Rs.4,500 per tonne of cane. This rally is part of a broader protest addressing eight key demands, including a ban on ethanol imports and financial relief for sugar factory loans.
The farmers' movement has gained momentum over the past six weeks, surprising both sugar mill management and government officials at the state and central levels. The rally underscores the urgency of the farmers' plight, particularly as they face a challenging economic environment exacerbated by rising retail sugar prices, which have reached Rs.68-75 per kg. The government has attempted to mitigate these issues by allowing duty-free imports of raw sugar, extending the deadline for imports to December 31.
The sugar industry is currently grappling with significant financial losses, with the fair and remunerative price (FRP) for sugarcane set at Rs.3,650 per tonne, leaving mills with a loss of Rs.550 per tonne. Despite the government's initiatives to blend ethanol with petrol to support the industry, procurement rates have dropped sharply, from 60% in 2018 to just 26-27% expected in 2025. Farmers argue that the government's recent decisions, including halting the procurement of ethanol from B-heavy molasses, threaten the viability of the cooperative sugar sector.
The impact of drought conditions has further complicated the situation, leading to a decline in sugar recovery rates from cane. Farmers are concerned that early crushing of immature cane will exacerbate losses, potentially reducing recovery rates by up to 2%. With nearly 50 lakh farmers involved in sugarcane cultivation and 10 lakh cane cutters dependent on the industry, the economic stakes are high. Farmers are now calling for direct subsidies of Rs.500 per tonne to offset their losses.
Looking ahead, the farmers' organizations are determined to continue their protests until their demands are met. The situation remains tense, with the government under pressure to address the grievances of the agricultural community. As the sugar industry faces a potential loss of nearly Rs.7,000 crore, the farmers' rally in Kolhapur marks a pivotal moment in their ongoing struggle for fair treatment and sustainable practices in the sector.
