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					             STATUS PAPER ON SUGARCANE

                                                                                      By
                                                        K. Prabhakar Reddy,
                           Convener, National Sugarcane Commodity Council of CIFA

                                                               &
                                  P.V. Subbaiah Choudary, Advisor, CIFA
                                          Flat No. 209, Vijaya Towers, Shanti Nagar,
                                                                 Hyderabad – 500 028.


1. INTRODUCTION

       About 200 countries grow the crop to produce 1,324.6 million tons (more than
six times the amount of sugar beet produced). As of the year 2005, the world's
largest producer of sugar cane is Brazil followed by India. Uses of sugar cane include
the production of sugar, Falernum, molasses, rum, soda, cachaça (the national spirit
of Brazil) and ethanol for fuel. The bagasse that remains after sugar cane crushing
may be burned to provide both heat - used in the mill - and electricity, typically sold to
the consumer electricity grid. It may also, because of its high cellulose content, be
used as raw material for paper and cardboard, branded as "environmentally friendly"
as it is made from a by-product of sugar production. Sugarcane was originally from
tropical South Asia and Southeast Asia. Different species likely originated in different
locations with S. barberi originating in India and S. edule and S. officinarum coming
from New Guinea. The thick stalk stores energy as sucrose in the sap. From this
juice, sugar is extracted by evaporating the water. Crystallized sugar was reported
5000 years ago in India.

       Around the eighth century A.D., Arabs introduced sugar to the Mediterranean,
Mesopotamia, Egypt, North Africa, and Spain. By the tenth century, sources state,
there was no village in Mesopotamia that didn't grow sugar cane. It was among the
early crops brought to the Americas by Spaniards. Brazil is currently the biggest
sugar cane producing country.



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       The methods of growing sugarcane and processing sugar were technologies
transferred to China from India in the 7th century, during the reign of Harsha (r. 606–
647) over North India and the reign of Emperor Taizong (r. 626–649) over Tang
China. Two sugar makers summoned from leaders of Mahabodhi Temple traveled
alongside a delegation of Buddhist monks to China, where they successfully taught
the Chinese how to grow sugarcane and produce sugar.

       A boiling house was used in the 17th through 19th centuries to make
sugarcane juice into raw sugar. These houses were add-ons to the sugar plantations
in the western colonies. This process was often conducted by the African slaves,
under very poor conditions. The boiling house was made of cut stone. The furnaces
were rectangular boxes of brick or stone with openings near to one side, and at the
bottom to stoke the fire and pull out the ashes. At the top of each furnace were up to
seven copper kettles or boilers, each one smaller than the previous one and hotter.
The cane juice was placed in the first copper kettle which was the largest. The juice
was then heated and a little lime added to remove impurities. The juice was then
skimmed then channeled to the other copper kettles. The last kettle, which was
called the 'teache' was where the cane juice became syrup. It was then put into
cooling troughs where the sugar crystals hardened around a sticky core of molasses.
The raw sugar was then shoveled from the cooling trough into hogsheads (wooden
barrels) where they were put in the curing house.

       Brazil is a major grower of sugarcane, which is used to produce sugar and
provide the ethanol used in making gasoline-ethanol blends (gasohol) for
transportation fuel. In India, sugarcane is sold as jaggery and also refined into sugar,
primarily for consumption in tea and sweets, and for the production of alcoholic
beverages.

2. CULTIVATION
       Sugarcane cultivation requires a tropical or subtropical climate, with a
minimum of 600 mm (24 in) of annual moisture. It is one of the most efficient
photosynthesizers in the plant kingdom, able to convert up to 2 percent of incident
solar energy into biomass. In prime growing regions, such as Peru, Brazil, Colombia,
Australia, Ecuador, Cuba and Hawaii, sugarcane can produce 20 kg for each square
meter exposed to the sun.



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       Sugarcane is propagated from cuttings, rather than from seeds; although
certain types still produce seeds, modern methods of stem cuttings have become the
most common method of reproduction. Each cutting must contain at least one bud,
and the cuttings are usually planted by hand. Once planted, a stand of cane can be
harvested several times; after each harvest, the cane sends up new stalks, called
ratoons. Usually, each successive harvest gives a smaller yield, and eventually the
declining yields justify replanting. Depending on agricultural practice, two to ten
harvests may be possible between plantings.


       Sugarcane is harvested mostly by hand or sometimes mechanically. Hand
harvesting accounts for more than half of the world's production, and is especially
dominant in the developing world. When harvested by hand, the field is first set on
fire. The fire spreads rapidly, burning away dry dead leaves, and killing any
venomous snakes hiding in the crop, but leaving the water-rich stalks and roots
unharmed. With cane knives or machetes, harvesters then cut the standing cane just
above the ground. A skilled harvester can cut 500 kg of sugarcane in an hour.


       Sugarcane mechanical harvest in Jaboticabal, São Paulo state, Brazil. With
mechanical harvesting, a sugarcane combine (or chopper harvester), a harvesting
machine originally developed in Australia, is used. The Austoft 7000 series was the
original design for the modern harvester and has now been copied by other
companies including Cameco and John Deere. The machine cuts the cane at the
base of the stalk, separates the cane from its leaves, and deposits the cane into a
haulout transporter while blowing the thrash back onto the field. Such machines can
harvest 100 tonnes of cane each hour, but cane harvested using these machines
must be transported to the processing plant rapidly; once cut, sugarcane begins to
lose its sugar content, and damage inflicted on the cane during mechanical
harvesting accelerates this decay.


       Sugar cane is cultivated in almost all the world only for some months of the
year, in a period called 'safra', the Portuguese word for harvest. The only place in the
world where there is no 'safra', and therefore sugar cane is cultivated and produced
year round is Colombia in South America.




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3. PESTS

      The most important sugarcane pests are the larvae of some butterfly/moth
species, including the turnip moth, the sugarcane borer (Diatraea saccharalis), the
Mexican rice borer (Eoreuma loftini), leaf-cutting ants, termites; spittlebugs
(especially Mahanarva fimbriolata and Deois flavopicta), and the beetle Migdolus
fryanus. The planthopper Eumetopina flavipes is an insect which acts as a vector for
the phytoplasma which causes the sugarcane disease ramu stunt.




                            LIST OF SUGARCANE DISEASES
      S.No.                         Name of the Diseases

        1.    Bacterial diseases
        2.    Fungal diseases
        3.    Miscellaneous diseases and disorders
        4.    Nematodes, parasitic
        5.    Viral diseases
        6.    References




                               BACTERIAL DISEASES

     Gumming disease            Xanthomonas campestris pv. vasculorum

     Leaf scald                 Xanthomonas albilineans

     Mottled stripe             Herbaspirillum rubrisubalbicans

     Ratoon stunting disease Leifsonia xyli subsp. xyli

     Red stripe (top rot)       Acidovorax avenae




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                                      FUNGAL DISEASES
Banded sclerotial (leaf)       Thanatephorus cucumeris = Pellicularia sasakii
disease                        Rhizoctonia solani [anamorph]

Black rot                      Ceratocystis adiposa Chalara sp. [anamorph]

Black stripe                   Cercospora atrofiliformis

Brown spot                     Cercospora longipes

Brown stripe                   Cochliobolus stenospilus Bipolaris stenospila [anamorph]

Downy mildew                   Peronosclerospora sacchari = Sclerospora sacchari
Downy mildew, leaf splitting   Peronosclerospora miscanthi = Sclerospora mischanthi
form                           Mycosphaerella striatiformans

Eye spot                       Bipolaris sacchar = Helminthosporium sacchari
                               Gibberella fujikuroi Fusarium moniliforme [anamorph]
Fusarium sett and stem rot     Gibberella subglutinans
                               Clypeoporthe iliau = Gnomonia iliau Phaeocytostroma iliau
Iliau                          [anamorph]

Leaf blast                     Didymosphaeria taiwanensis

Leaf blight                    Leptosphaeria taiwanensis Stagonospora tainanensis [anamorph]

Leaf scorch                    Stagonospora sacchari
Marasmius sheath and shoot
blight                     Marasmiellus stenophyllus = Marasmius stenophyllus
Myriogenospora leaf binding
(tangle top)                   Myriogenospora aciculispora

Phyllosticta leaf spot         Phyllosticta hawaiiensis

Phytophthora rot of cuttings   Phytophthora spp. Phytophthora megasperma
                               Ceratocystis paradoxa Chalara paradoxa = Thielaviopsis
Pineapple disease              paradoxa [anamorph]
Pokkah boeng (that may         Gibberella fujikuroi Fusarium moniliforme [anamorph]
have knife cut symptoms)       Gibberella subglutinans

Red leaf spot (purple spot)    Dimeriella sacchari
                               Glomerella tucumanensis = Physalospora tucumanensis
Red rot                        Colletotrichum falcatum [anamorph]
Red rot of leaf sheath and
sprout rot                     Athelia rolfsi = Pellicularia rolfsii Sclerotium rolfsii [anamorph]



        CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                  5
Red spot of leaf sheath      Mycovellosiella vaginae = Cercospora vaginae
Rhizoctonia sheath and shoot
rot                          Rhizoctonia solani
                             Phaeocytostroma sacchari = Pleocyta sacchari = Melanconium
Rind disease (sour rot)      sacchari

Ring spot                    Leptosphaeria sacchari Phyllosticta sp. [anamorph]
                             Marasmius sacchari Pythium arrhenomanes
                             Pythium graminicola Rhizoctonia sp.
Root rots                    Unidentified Oomycete

Rust, common                 Puccinia melanocephala = Puccinia erianthi

Rust, orange                 Puccinia kuehnii

Schizophyllum rot            Schizophyllum commune

Sclerophthora disease        Sclerophthora macrospora
                             Alternaria alternata Bipolaris sacchari
                             Cochliobolus hawaiiensis Bipolaris hawaiiensis [anamorph]
                             Cochliobolus lunatus
                             Curvularia lunata [anamorph] Curvularia senegalensis
                             Setosphaeria rostrata Exserohilum rostratum [anamorph]
Seedling blight              Drechslera halodes

Sheath rot                   Cytospora sacchari

Smut, culmicolous            Ustilago scitaminea

Target blotch                Helminthosporium sp.

Veneer blotch                Deightoniella papuana

White rash                   Elsinoë sacchari Sphaceloma sacchari [anamorph]

Wilt                         Fusarium sacchari = Cephalosporium sacchari

Yellow spot                  Mycovellosiella koepkei = Cercospora koepkei

Zonate leaf spot             Gloeocercospora sorghi




       CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE         6
                    MISCELLANEOUS DISEASES AND DISORDERS
Bud proliferation            Undetermined
Bunch top                    Undetermined
Cluster stool                Undetermined
Internal stalk necrosis      Undetermined
Leaf freckle                 Undetermined
Leaf stipple                 Undetermined
Multiple buds                Undetermined
Stem galls                   Undetermined
                               NEMATODES, PARASITIC
Lesion                       Pratylenchus spp.
Root-knot                    Meloidogyne spp.
Spiral                       Helicotylenchus spp. Rotylenchus spp. Scutellonema spp.
                                    VIRAL DISEASES
(Also mycoplasmalike organisms [MLO])
Chlorotic streak             Virus (assumed)
Dwarf                        Sugarcane dwarf virus
Fiji disease                 Sugarcane Fiji disease virus
Grassy shoot                 MLO
Mosaic                       Sugarcane mosaic virus
Sereh                        Virus (assumed)
Streak disease               Maize streak virus, sugarcane strain
White leaf                   MLO


  4. PROCESSING
         Traditionally, sugarcane has been processed in two stages. Sugarcane mills,
  located in sugarcane-producing regions, extract sugar from freshly harvested
  sugarcane, resulting in raw sugar for later refining, and in "mill white" sugar for local
  consumption. Sugar refineries, often located in heavy sugar-consuming regions,
  such as North America, Europe, and Japan, then purify raw sugar to produce refined
  white sugar, a product that is more than 99 percent pure sucrose. These two stages
  are slowly becoming blurred. Increasing affluence in the sugar-producing tropics has
  led to an increase in demand for refined sugar products in those areas, where a trend
  toward combined milling and refining has developed.


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5. MILLING

       Sugarcane first has to be moved to a mill which is usually located close to the
area of cultivation. Small rail networks are a common method of transporting the
cane to a mill. Once the factories acquire the cane it will be subjected to the quality
test. In Sri Lanka cane will be evaluated according to the brix and trash percentage.
In a sugar mill, sugarcane is washed, chopped, and shredded by revolving knives.
The shredded cane is repeatedly mixed with water and crushed between rollers; the
collected juices (called garapa in Brazil) contain 10–15 percent sucrose, and the
remaining fibrous solids, called bagasse, are burned for fuel. Bagasse makes a
sugar mill more than self-sufficient in energy; the surplus bagasse can be used for
animal feed, in paper manufacture, or burned to generate electricity for the local
power grid.


       The cane juice is next mixed with lime to adjust its pH to 7. This mixing arrests
sucrose's decay into glucose and fructose, and precipitates out some impurities. The
mixture then sits, allowing the lime and other suspended solids to settle out, and the
clarified juice is concentrated in a multiple-effect evaporator to make a syrup about
60 percent by weight in sucrose. This syrup is further concentrated under vacuum
until it becomes supersaturated, and then seeded with crystalline sugar. Upon
cooling, sugar crystallizes out of the syrup. A centrifuge is used to separate the sugar
from the remaining liquid, or molasses. Additional crystallizations may be performed
to extract more sugar from the molasses; the molasses remaining after no more
sugar can be extracted from it in a cost-effective fashion is called blackstrap.


       Raw sugar has a yellow to brown colour. If a white product is desired, sulfur
dioxide may be bubbled through the cane juice before evaporation; this chemical
bleaches many color-forming impurities into colourless ones. Sugar bleached white
by this sulfitation process is called "mill white", "plantation white", and "crystal sugar".
This form of sugar is the form most commonly consumed in sugarcane-producing
countries. Traditionally, sugarcane has been processed in two stages. Sugarcane
mills, located in sugarcane-producing regions, extract sugar from freshly harvested
sugarcane, resulting in raw sugar for later refining, and in "mill white" sugar for local
consumption. Sugar refineries, often located in heavy sugar-consuming regions,



CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                     8
such as North America, Europe, and Japan, then purify raw sugar to produce refined
white sugar, a product that is more than 99 percent pure sucrose. These two stages
are slowly becoming blurred. Increasing affluence in the sugar-producing tropics has
led to an increase in demand for refined sugar products in those areas, where a trend
toward combined milling and refining has developed.

6. REFINING

       In sugar refining, raw sugar is further purified. It is first mixed with heavy syrup
and then centrifuged clean. This process is called 'affination'; its purpose is to wash
away the outer coating of the raw sugar crystals, which is less pure than the crystal
interior. The remaining sugar is then dissolved to make a syrup, about 70 percent by
weight solids.

       The sugar solution is clarified by the addition of phosphoric acid and calcium
hydroxide, which combine to precipitate calcium phosphate. The calcium phosphate
particles entrap some impurities and absorb others, and then float to the top of the
tank, where they can be skimmed off. An alternative to this "phosphatation"
technique is 'carbonatation,' which is similar, but uses carbon dioxide and calcium
hydroxide to produce a calcium carbonate precipitate.

       After any remaining solids are filtered out, the clarified syrup is decolorized by
filtration through a bed of activated carbon; bone char was traditionally used in this
role, but its use is no longer common. Some remaining colour-forming impurities
adsorb to the carbon bed. The purified syrup is then concentrated to supersaturation
and repeatedly crystallized under vacuum, to produce white refined sugar. As in a
sugar mill, the sugar crystals are separated from the molasses by centrifuging.
Additional sugar is recovered by blending the remaining syrup with the washings
from affination and again crystallizing to produce brown sugar. When no more sugar
can be economically recovered, the final molasses still contains 20–30 percent
sucrose and 15–25 percent glucose and fructose.

       To produce granulated sugar, in which the individual sugar grains do not
clump together, sugar must be dried. Drying is accomplished first by drying the sugar
in a hot rotary dryer, and then by conditioning the sugar by blowing cool air through it
for several days.


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7. RIBBON CANE SYRUP

      Ribbon cane is a subtropical type that was once widely grown in southern
United States, as far north as coastal North Carolina. The juice was extracted with
horse or mule-powered crushers; the juice was boiled, like maple syrup, in a flat pan,
and then used in the syrup to form as a sweetener for other foods. It is not a
commercial crop nowadays, but a few growers try to keep alive the old traditions and
find ready sales for their product. Most sugarcane production in the United States
occurs in Florida and Louisiana, and to a lesser extent in Hawaii and Texas.


8. MAJOR SUGARCANE PRODUCING COUNTRIES

                        Top 10 Sugarcane Producers, 2005

                       Country                         1000 tons
          Brazil                                        422,926
          India                                         232,300
          People's Republic of China                     87,768
          Pakistan                                       47,244
          Mexico                                         45,195
          Thailand                                       43,665
          Colombia                                       39,849
          Australia                                      37,822
          Indonesia                                      29,505
          USA                                            25,307
                                 World Total           1,011,581
          Source: UN Food & Agriculture Organisation (FAO)


      In India, the states of Uttar Pradesh (38.57 %), Maharashtra (17.76 %) and
Karnataka (12.20 %) lead the nation in sugarcane production.


      In the United States, sugar cane is grown commercially in Florida, Hawaii,
Louisiana, Texas, and Puerto Rico.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE              10
9. CANE ETHANOL

        This is generally available as a by-product of sugar mills producing sugar. It
can be used as a fuel, mainly as a biofuel alternative to gasoline, and is widely used
in cars in Brazil. It is steadily becoming a promising alternative to gasoline throughout
much of the world and thus instead of sugar may be produced as a primary product
out of sugar canes processing.


        At present, 74 tons of raw sugar cane are produced annually per hectare in
Brazil. The cane delivered to the processing plant is called burned and cropped (b&c)
and represents 77% of the mass of the raw cane. The reason for this reduction is that
the stalks are separated from the leaves (which are burned and whose ashes are left
in the field as fertilizer) and from the roots that remain in the ground to sprout for the
next crop. Average cane production is, therefore, 58 tons of b&c per hectare per
year.
        Each ton of b&c yields 740 kg of juice (135 kg of sucrose and 605 kg of water)
and 260 kg of moist bagasse (130 kg of dry bagasse). Since the higher heating value
of sucrose is 16.5 MJ/kg, and that of the bagasse is 19.2 MJ/kg, the total heating
value of a ton of b&c is 4.7 GJ of which 2.2 GJ come from the sucrose and 2.5 from
the bagasse.
        Per hectare per year, the biomass produced corresponds to 0.27 TJ. This is
equivalent to 0.86 W per square meter. Assuming an average insolation of 225 W per
square meter, the photosynthetic efficiency of sugar cane is 0.38%.
The 135 kg of sucrose found in 1 ton of b&c are transformed into 70 liters of ethanol
with a combustion energy of 1.7 GJ. The practical sucrose-ethanol conversion
efficiency is, therefore, 76% (compare with the theoretical 97%).
One hectare of sugar cane yields 4000 liters of ethanol per year (without any
additional energy input because the bagasse produced exceeds the amount needed
to distill the final product). This however does not include the energy used in tilling,
transportation, and so on. Thus, the solar energy-to-ethanol conversion efficiency is
0.13%.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                  11
10. SUGARCANE AS FOOD

   In most countries where sugarcane is cultivated, there are several foods and
popular dishes derived from it, such as:

      Direct consumption of raw sugarcane cylinders or cubes, which are chewed to
       extract the juice, and the bagasse is spat out
      Freshly extracted juice (garapa, guarab, guarapa, guarapo, papelón, 'aseer
       asab, Ganna sharbat, mosto or caldo de cana) by hand or electrically
       operated small mills, with a touch of lemon and ice, makes a popular drink.
      Molasses, used as a sweetener and as a syrup accompanying other foods,
       such as cheese or cookies
      Rapadura, a candy made of flavored solid brown sugar in Brazil, which can be
       consumed in small hard blocks, or in pulverized form (flour), as an add-on to
       other desserts.
      Sugarcane is also used in rum production, especially in the Caribbean.
      Cane sugar syrup was the traditional sweetener in soft drinks for many years,
       but has been largely supplanted (in the US at least) by high-fructose corn
       syrup, which is less expensive, but is considered by some to not taste quite
       like the sugar it replaces.

11. OVERVIEW OF INDIAN SUGAR INDUSTRY

 Sugar industry is the second largest Agro based industry in India.
 The only industry which is located in rural areas with a capital investment of
   Rs.1000 Crores.
 Around 50 million farmers and their dependents are involved in sugarcane
   cultivation constituting 7.5% of rural population.
 0.5 Million skilled and semi skilled workmen mostly from rural areas are engaged
   in sugar industry.
 The sugar industry has been a focal point for socio economic development in
   rural areas.
 The industry distributes over 65% of its revenue in the rural area by the way of
   cane price.


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 The area under sugarcane cultivation is 4 million hectares and the average yield
   is 65 metric tons per hectare.
 There are 566 sugar factories working (maximum in the cooperative sector and
   the rest in the public and private sectors).
 The average capacity of each factory is 3500tons of cane crush per day.
 The average duration is 140 days per annum
 The average sugar recovery is 10.25%
 India is the second largest producer of sugarcane next to Brazil.
 The estimated production is 135.46 lakh tons.
 India had produced over 20 million tons in the past. It was also the highest
   producer of sugar in some years.
 90% of the sugar production is concentrated in Six States .i.e, Maharashtra, Uttar
   Pradesh, Tamil Nadu, Karnataka, Andhra Pradesh and Gujarat while the balance
   is spread over in the rest of states.
 Co-operative sector produces around 55% of sugar while the private sector
   produces around 40% and the public sector around 5%.
 India‟s production and consumption match normally except in some exceptional
   years.
 The per capita consumption of sugar is 20 kg besides other sweeteners like
   Jaggery and Khandasari of 7 kgs per annum
 India exports small quantities of sugar mainly to the neighboring countries –
   Srilanka, Bangladesh, Pakistan, Indonesia, etc.
 90% of the sugar produced is released for open market by the Government of
   India in a regulated way in order to maintain even flow of sugar into the market
   and to maintain prices stability.
 10% of the sugar produced is released for distribution to the below poverty line
   population at fixed price.
 The excise duty on open market Sugar is Rs.85/- per quintal and on controlled
   market sugar is Rs.38/-. Out of open market price of Rs.85/-, Rs.14/- goes to
   sugarcane development fund.
 Sugarcane is taxed varyingly by different states.



CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE            13
 The retail price of Open market Sugar is Rs.18/- per kilo and the levy price of
   sugar is Rs. 13.50/- per kilo
 The Sugar industry operates on self generated renewable energy.
 The sugar industry has potential to produce 5000 MW of additional power for
   supply to the public, which is renewable and clean energy.
 50 factories have so far gone in for Co-Generation of power with an installed
   capacity of approximately 700 MW.




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CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE         14
12.      SUGARCANE GROWERS PERSPECTIVE ON THE SUGAR CONTROL
         ORDER 1966 AND OTHER ECONOMIC & INFRASTRUCTURE ISSUES

SUGARCANE
1. Statuary Minimum Price (SMP)

    Clause 3 sub clause 1 of Sugarcane (control) order 1966, stipulate the following
regarding fixing SMP
       (a) the cost of production of sugarcane
       (b) the return to the grower from alternative crops and the general trend of prices
           of agricultural commodities.
       (c) the availability of sugar to the consumer at a fair price
       (d) the price at which sugar produced from sugarcane is sold by producers of
           sugar and
       (e) the recovery of sugar from sugarcane.

         The criteria stipulated above regarding fixing MSP brings out the following
irrationalities.

1.1.     As per the above section sugarcane price is to be fixed on the basis of cost of
         production. Methodology followed by the CACP in fixing the sugarcane prices
         is not in accordance with the guidelines of the National Agriculture Policy.
         Wages considered by the CACP in fixing the cane prices is no where in
         proportion to the wages actually paid by the sugarcane growers. Further,
         family labour and land rent in real terms have not been taken in to
         consideration. Hence the CACP has to revise its methodology of estimating
         the cost of production of sugarcane.

         The Directorate of Economics and Statistics (DES), New Delhi obtains data
         regarding costs of cultivation of various crops from the centres working under
         the Agricultural Universities of concerned states for which the work is
         entrusted. The computation of costs regarding family labour & bullock power
         and other parameters have no relevance with the cost of cultivation actually
         incurred by farmers. Further it is observed that data pertaining to previous
         years is adopted for current year with out giving cognizance to the increase in
         the cost of inputs.


CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                  15
       It is learnt that no farmer is approached by field assistants for eliciting costs of
       cultivation particulars. Further no farmer‟s signature or thumb impression is
       obtained on the statements pertaining to costs of cultivation data in token of
       the visit of field supervisor.


       The MSP plays vital role in obtaining remunerative prices for agricultural
       commodities by farmers. Therefore, the whole system is required to be
       revamped and transparent procedures introduced by involving and inducting
       more farmers into the system as recommended by Prof. M.S. Swaminathan to
       enable the farmers to obtain remunerative prices.


       The CACP is expected to take into consideration several parameters while
       fixing MSP of various crops. Among them increase in the cost of inputs,
       International prices and production costs plays critical role in arriving the MSP.
       But the data published in the Agricultural Statistics at a Glance for the last few
       years exhibit that details of costs of cultivation have not been published except
       for the years 2001- 02 and 2002-03. In the absence of costs of cultivation
       particulars it is assumed that the parameters which are to be taken into
       consideration have not been adopted. The MSP of various crops are furnished
       from the year 1997-98 to 2006-07 but conspicuously the costs of cultivation
       details are not published. Thus it is assumed that recommended and fixed
       prices by CACP and GOI respectively are not based on the actual costs of
       cultivation/production costs. It appears to be a ritual and the price fixed is a
       Political Support Price (PSP), but not Minimum Support Price (MSP).


1.2.   According to the sub clause 1.b of the above stated clause minimum prices for
       sugarcane can be fixed by the sugar factories in regard to “the returns realized
       by the grower from alternate crops and the general trend of prices of the
       agriculture commodities” which is illogical. Crop duration, cost of cultivation
       and other infrastructure required for cultivation differ form crop to crop. Fixing
       of SMP for sugarcane based on the returns of alternate crops and the general
       trend of prices of agriculture commodities results in less remunerative prices
       for sugarcane growers.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                   16
1.3.   Sub clause 1.c stipulate that the minimum price of sugarcane to be paid by the
       producer of the sugar or their agents for the sugarcane purchased by them in
       regard to “the availability of sugar to the consumer at a fair price”. Providing
       sugar to the consumer at a fair price brings in considerable loss to the
       sugarcane grower and this stipulation is coming in the way of fixing sugarcane
       prices based on actual cost of cultivation.


1.4    Clause 3 sub clause 1.d of Sugarcane (control) order 1966 says that the SMP
       for sugarcane shall be fixed by considering the price at which sugar produced
       from sugarcane is sold by producers of sugar” has never been complied with.
       Whenever the market prices of sugar increase, that escalation in price is
       never been passed on to the sugarcane growers.


1.5.   SUGAR RECOVERY

       Under the Clause 3 sub clause 1 e of the Sugarcane (control) order 1966
       sugar recovery is also considered in fixing the SMP.Sugar recovery depends
       on the efficiency of the crushing and processing machineries. Most sugar
       factories in India posses outdated technologies while eventually affects suagr
       recovery. The Sugarcane (control) order 1966 should be amended by
       specifying the technology and machinery standards to arrive at the right
       recovery rates.

2.0    STATE ADVISORY PRICES (SAP)

       States announce State Advisory Prices (SAP) in addition to the Statuary
       Minimum Price (SMP) declared by Government of India i.e., additional price
       for the sugarcane growers. After 1996-97 the southern states have stopped
       declaring the SAP. But the Supreme Court verdict dt. 05-5-2004 empowered
       the states to declare SAP. Though the states announce SAP, sugar factories
       are evasive in paying the same to the sugarcane growers. Hence the State
       governments shall be empowered to fix the respective State Advisory Prices
       (SAP) in accordance to the local needs under the Sugarcane (control) order
       1966 and it shall be obligatory on the part of sugar factories to extend the
       same price to the sugarcane growers.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE               17
3.0.   PAYMENT OF CANE PRICES

       Clause 3 sub clause 3 of Sugarcane (control) order 1966 stipulate that the
       sugar factories shall pay the sugarcane growers within fourteen days from the
       date of delivery of sugarcane. But the sugar factories fail to pay the price
       within the time duration as specified under the Sugarcane (control) order
       1966. Sugarcane (control) order 1966 should be amended directing the sugar
       factories to set apart 75% of the amount realized by the sale or pledge of
       sugar which could be used to pay the sugarcane growers.

4.0    SUGARCANE DIRECTORATE

       The Sugar directorate deals with production of sugar and its distribution. Its
       role in addressing the issues related to sugarcane production is not
       pronounced. Sugarcane production involves several stages and needs variety
       of extension services at all levels. Therefore it is inevitable to have a separate
       directorate for sugarcane.

5.0    AUTHORITY AT STATE LEVEL :

       Agriculture being a state subject, it is necessary for the states to have an
       authority in addition to the proposed Directorate for sugarcane in the centre so
       as to safeguard the interests of the sugarcane growers. Sates Governments
       should be empowered to appoint an authority for the purpose by amending the
       Sugarcane (control) order 1966, to protect the interests of sugarcane growers.

6.0    BY-PRODUCTS

       Further the sugarcane bagasse could also be used for manufacturing varied
       environment friendly byproducts. Hence, the Government of India should
       evolve a new policy by amending the Sugarcane (control) order 1966 for the
       manufacture, sale and export of such byproducts and the sugar factories with
       such facilities shall be directed to share the additional price realized with the
       sugarcane producers.

7.0    CO-GENERATION
       The sugarcane bagasse can be effectively used in producing electricity (green
       power) which could solve the problem of rural electrification. Only few sugar
       industries are producing green power. It should be made mandatory for



CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                 18
      producing green power round the year by all sugar factories, by utilizing
      agriculture waste. Necessary methodology be evolved for providing financial
      assistance, power purchase policy and distribution.

8.0   PROFIT SHARING
      The recommendations of Bhargava Committee relating to sharing of profits
      generated from out of sugar and bio-products has not been implemented even
      after lapse of four years from the date of recommendations. The sugarcane
      growers are deprived of their rightful share in the profits generated by the
      sugar factories. Appropriate mechanism be evolved to arrive these „L‟ profits
      every year, and distribute the same to sugarcane growers. The GOI should
      make this as mandatory and initiate steps to ensure that cane growers get
      their due share in the profits already earned.


9.0   ETHANOL

      Studies conducted in Brazil, and other countries on the use of ethanol blends
      confirm that the blends provide better mileage to vehicles when compared to
      petrol. The Government shall bring in necessary legislation making the use of
      ethanol blended petrol compulsory. The present level of 5% addition of
      ethanol to petrol shall be increased to 20% which could eventually help the
      sugarcane growers in realizing better prices, as recommended by several
      committees.

10.0 EXTENSION SERVICES

      The extension services play a crucial role in maintaining quality and quantity
      of sugarcane yields. But unfortunately, no staff are appointed by Government
      for looking after sugarcane development. Hence, trained sugarcane
      development officers be appointed to extend innovative and modern
      technologies to sugarcane growers.

11.0 RESEARCH & DEVELOPMENT

      Individual farmers, in some of the states are obtaining higher yields ranging
      300 to 350 MT for hectare. The research stations should study the
      methodology adopted for obtaining higher yields and help sugarcane growers
      to adopt such methodology and secure higher yields. Sugarcane research


CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE            19
       should evolve short duration, drought resistant, pest and disease resistant and
       high yielding varieties and novel cultivation practices like tissue culture and
       Poly bag nursery etc. The sugarcane growers are not receiving any help
       regarding innovative culture practices from the research stations. Therefore,
       the research stations should adopt the policies which will be helpful to the
       sugarcane growers for obtaining higher yields.

12.0 INVENTION OF MODERN IMPLEMENTS

       The sugarcane growers need several implements from sugarcane planting to
       harvesting. The implements required are seed treatment equipment, planter,
       inter-cultivation operations, earthing up, fertigation, spraying and harvesting
       etc. The efficiency of traditional implements delays completion of operations
       as well as contribute for increase in the cost of cultivation, but the modern
       implements facilitate quick operations as well as reduced costs and increased
       yields.
       Consequent on un-remunerative returns from farm sector, the agriculture
labourers are migrating to cities in search of livelihoods. The labour left out in villages
are attracted towards National employment scheme introduced by GOI, since
working hours are less and wages are high when compared to the wages obtained
under agricultural operations.

       This situation aggravated the labour problem in the villages and farmers are
unable to continue agricultural operations. During the last two years the situation is
reached from bad to worst stage. Due to this problem the cropped area has been
drastically reduced. In the absence of regular inter culture operations the yields of
various crops are reduced.

       In the case of sugarcane, harvesting charges are abnormally increased from
Rs. 150/- to Rs. 450/- per tonne. Similarly plantation and harvesting charges in the
case of paddy is increased for Rs. 450/- to Rs. 1000/- and Rs. 1200/- to Rs. 2500/-,
respectively. The same situation is prevailing in the case of all other crops grown in
the country. It is not out of place to mention that agricultural labour charges are
increased from 100% to 200% in almost all the states and the cost of cultivation of
the farmers is increased and negative returns are obtained.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                   20
The following suggestions are made for providing mechanized agricultural
implements to enable the farmers to complete agricultural operations in time and
obtain better yields and remunerative prices.

   The concept of introduction of mechanized equipment is not suited for the small
     holdings in the country is not tenable since countries like China, Japan and
     other countries which possess small holding than India are successfully
     deploying mechanized agriculture implements.
   Further that mechanization of agricultural operations would throw agriculture
     labour out of their livelihood is also a misnomer since introduction of
     mechanized implements improve the efficiency of agriculture labour and also
     lessens the physical drudgery on their part.
   Major crops grown in a particular area and mechanized implements required for
     the respective crops should be identified and number of implements required for
     completing agricultural operations provided,in time.
   The tractors and power tillers are taking care of preliminary agricultural
     operations viz., ploughing, tilling etc. where ever bullock and man power is not
     available. But there are no mechanized seed drills, inter cultivation equipments
     and harvester for various crops. There is immediate need for providing such
     mechanized implements to meet the demand and facilitate timely agricultural
     operations.
   The existing Tractors, power tillers owners and any other agencies who are
     operating on hire basis should be provided with additional implements useful for
     planting, seed drilling, inter cultivation, pest management pre and post
     harvesting with 80% subsidy to facilitate farmers to complete agricultural
     operations in time, obtain increased yields and remunerative prices.
   Group of farmers and self help groups should be encouraged to obtain such
     machinery and provide custom hiring service to farmers in the villages.
   All taxes on agricultural machinery should be waived
   Agricultural engineering should be strengthened to update technologies from
     time to time.
   Agricultural implements with innovative technology adopted in other countries
     should be introduced, replicated for the farmers use in the country.



CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE             21
    Right from plantation to harvesting including inter cultivation and pest
     management, mechanized modern implements, Bullock and power driven
     should be introduced.

13.0 SUGARCANE DEVELOPMENT FUND

       The “Sugarcane Development Fund” is intended for sugarcane development
and modernizing sugar industries. Unfortunately the fund is utilized for modernizing
sugar industries but not sugarcane development. Therefore, the sugar control order
should stipulate the percentage of amount be spent on sugarcane development and
sugar industries proportionately.

14.0 FIELD DELIVERY OF CANE

       The sugarcane cutting and transport charges are born by sugar factories and
field delivery is taken in the states like Maharashtra & Gujarat. This practice is
facilitating both the sugarcane growers and sugar factories for reaping expected
benefits. Hence, it should be made mandatory that all sugar factories take sugarcane
delivery at the field level.

15.0 PROTECTION OF SUGARCANE FROM WILD ANIMALS

       It is extensively reported that sugarcane crop is destroyed by wild animals in
most of the states. The Governments should evolve necessary protection
mechanism for protecting sugarcane from wild animals. Damage of sugarcane by
wild animals be covered in the insurance schemes and farmers who suffer crop
losses from wild animals be paid crop losses.

16.0 BAN ON IMPORT OF RAW SUGAR

       The sugarcane growers are producing required sugarcane and sugar factories
are producing sufficient sugar. Hence there is no need to import raw sugar. The
import of raw sugar is working against the interest of sugarcane growers either in
fixing Minimum Support Price (MSP) and sugar recovery ratio.         Therefore it is
suggested to ban import of raw sugar.

       Out of total sugar consumption only 20% is consumed by individual
consumers and 80% is consumed by business consumers. (55% sweet shops, 15%
soft drinks and 10% Bakeries & Chocolates). So why should there be controls.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE             22
17.0 PROVISION OF CREDIT & CROP INSURANCE

       The scale of finance being provided now for cultivating sugarcane is
inadequate to cover all costs of cultivation. It should be increased to Rs.20,000/- per
acre in order to cover all expenses involved in sugarcane cultivation, especially in
view of sharp increase in the labour charges and inputs. In the absence of adequate
finance the sugarcane growers are unable to provide all inputs required in time and
hence yield of the crop is adversely affected. Interest rebate be allowed in the case of
farmers who make repayment of loan in time. The banks are reluctant to advance
crop loans for sugarcane cultivation as per scale of finance fixed wherever farmers
have no tie up arrangements with sugar factories. The banks be directed to comply
with the scale of finance fixed for sugarcane and provide loans without relevance to
tie up arrangements with sugar factories.
       The premium on crop insurance is on high side. It should be reduced and both
the state and central governments should subsidize the insurance premium. The
premium to be paid by sugarcane growers towards crop insurance premium be
considered while computing MSP by CACP.


18.0 DRIP IRRIGATION


       Sugarcane is water intensive crop. The better yields depend on water
management. The drip irrigation system not only helps saving of water but also
supplies water to the sugarcane in time. Adoption of drip irrigation reduces water
charges. However, erecting of drip involves huge investment. Therefore, the
Government should provide 90% subsidy to the drip irrigation, irrespective of the
category and ceiling on the subsidy amount.


13. CIFA – ITS INNOVATIONS IN SUGARCANE CULTURE PRACTICES

       The Innovative Method of cultivation results the following :
      1. One third of land utilization.
      2. Thirty percent of water utilization.
      3. Ten percent of seed utilization




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                23
          CHIPPING OF BUDS FROM SUGARCANE




             SINGLE BUD SUGARCANE SETS




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   24
                       SEED TREATMENT




   Soil borne disease causing microbes, usually fungi, gain entry into the setts
    through the cut ends following planting.
   This leads to sett rotting and damage to budds and thus failure of germination.
   Sett treatment using a fungicide is absolutely necessary. 'Bavistin' a systemic
    fungicide is currently recommended. A 0.1% solution is recommended. This
    could be prepared by dissolving the chemical @1 g/lit of water. The setts
    should be dipped in the solution for about 5 minutes.
   Sett treatment should be done soon after cutting.
   Most sugarcane farmers do not treat the setts before planting.
   This is why in most cases, germination is only around 40 per cent. A
    germination of around 60 per cent can be easily achieved by sett treatment
    which is quiet simple and cheap.

                        SEED TREATMENT




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE           25
                FILLING OF TRAYS WITH BUDS




  PACKING OF TRAYS HAVING BUDS TO INITIATE SPROUTING




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   26
           SPROUTING OF SUGARCANE BUDS IN NURSERY




                      SPRINKLING OF WATER




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   27
                           25 DAYS SEEDLING




                           TRANSPLANTING




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   28
                         TILLERS – 60 DAYS




      RAISING NURSERY IN POLY BAGS WITH SINGLE BUD PIECE




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   29
                           SRI – SUGARCANE




     PLANTATION WITH 2 AND 3 BUDDED SETS UNDER PIT METHOD




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   30
           PIT TO PIT DISTANCE 5’ X 5’ WITH DRIP IRRIGATION




                             45 DAYS PLANT




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   31
    PAIR-ROW PLANTATION 4 FEET X 8 FEET FACILITATES INTER CROP
                          CULTIVATION




   In the paired row system, two cane rows are brought together followed by a
     wide gap before the next set of two rows.

   The paired rows may be at 60 cm with 120 cm gap.

   In this method the number of rows per hectare remains same.

   The advantages are that wide spacing is available between the any two sets
     of paired rows which can be utilized for growing profitable inter crops.

   Also good earthing up is possible so that lodging could be cheeked.

   The system also permits better light interception by the crop and thus can give
     higher yield.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE           32
                                MICRO IRRIGATION




  INCREASED IRRIGATION EFFICIENCY : Water utilization efficiency can be improved
       from 50-60% in flooding method to 90-95% in micro irrigation method.


IMPROVED CHEMICAL APPLICATION : The consumption of fertilizers and chemicals
can be reduced by up to 30 per cent, by using micro irrigation system since these are
applied through water directly at the root zone of the plant in a uniform and effective
way.

REDUCED WEED GROWTH : Since water is applied directly to the base of the plant,
weed germination between plants and plant rows is less to the extent of 50%.

DECREASED ENERGY REQUIREMENTS : Since less water is pumped for micro
irrigation, energy requirements are reduced. By irrigating one hectare sugarcane
crop with micro irrigation, 1059 kwh energy is saved when compared to flood
method.

                                   INTER CROPS




          Sugarcane field with Onion as          Visitors in the Sugarcane
                   intercrop                     plantation with Wheat as



CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE               33
                   WHEAT INTERCROP IN PAIR ROW 4’/8’




                        GREEN MANURE INTER CROP




      For getting higher economic returns intercropping in Sugarcane field is
necessary.   Onion, Potato, Cabbage, Cauliflower, Leafy vegetables, Groundnut,
Soybean etc. can be grown in initial stage of the cane crop. The intercrop species
should not be a heavy feeder and should have shallow root system, and will be of
90-100 days duration.


CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE          34
                FARMER EXHIBITING TALL SUGAR CANES




              TRASH-TWIST PROPPING IN SRI-SUGAR CANE

                                      LODGING LEADS TO SEVERAL PROBLEMS
                                         Cane breakage and thus loss of stalk
                                          number at harvest (loss in cane
                                          yield)
                                         Lodged canes are easily infested by
                                          certain pests and diseases.
                                         Damage by rats and rodents.
                                         Bud sprouting leads to reduced cane
                                          quality
                                         Aerial root formation affects cane
                                          quality
                                         Difficult to irrigate and harvest the
                                          crop.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE             35
                 MECHANICAL BENDING 5’ SINGLE ROW




                 MECHANICAL BENDING 6’ SINGLE ROW




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   36
                          MANUAL HARVESTING




                        SUGARCANE HARVESTER




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE   37
                         CANE HARVESTING OPERATION




       Now-a-days labour shortage is acute. In the coming years the labour problem
is likely to deteroiate further. Keeping all their in view mechanization of cane harvest
is inevitable.


BENEFITS TO THE FARMERS :

       Large areas could be harvested in a single day. While manual harvesting
leaves about three to four inches of cane in the ground, the mechanical harvester
can cut the crop 1" below the ground level, giving an additional yield of about one to
two nodes of cane. This results in a higher yield and recovery of sugar.


       The entire operation is done by two operators for the harvesters, three for the
transporter, one mechanic and a supervisor. This results in saving in labour as
normally about 600 labourers are needed to harvest 400 tonnes in a single day.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                38
      14.   IDENTIFICATION OF ISSUES AND ADVOCACY WITH CONCERNED AUTHORITIES.

                                 ISSUES CONCERNING GOI
S.No.         Issues             Present Position            Demand by Commodity Council
 1)     Price fixation to       There is no relevance      The cost of Industrial products is
        the Sugarcane            between the cost of         fixed based on capital, production
        (SMP)                    cultivation and SMP         raw     materials,      depreciation,
        (Ministry of             fixed.                      insurance, profit etc.
        Agriculture).          The production cost of      The salary of employees of Govt.,
                                Sugarcane is estimated       Public and Private Sectors,
                                at Rs. 167/- per qt.,        Railways, RTC are fixed based on
                                whereas the SMP fixed        cost index in addition to providing
                                is Rs. 80/- per qt., for     TA, DA, education, medical,
                                the sugar season 2007-       pension and other facilities.
                                08.                         Sugarcane price also be fixed by
                               Family labour, Land          adopting the same criteria.
                                rent, Power charges         Till     such          time       the
                                and wages as fixed in        recommendations of National
                                the minimum wages            Commission on Farmers headed
                                Act have not been            by Prof. M.S. Swaminathan be
                                adopted.                     implemented (viz C2+Minimum
                                                             50% of costs).
 2)     Fixation of Sugar   Sugarcane of different        In the case of milk, fat percentage is
        recovery            qualities is crushed by the   arrived,   farmer     wise.    Similar
        percentage          sugar factories. Thus,        procedure be adopted for arriving
        (Ministry of        farmer to farmer recovery     sugar recovery rate.
        Agriculture).       percentage is not arrived
                            at.    The      out   dated
                            technologies adopted by
                            sugar factories affecting
                            the sugar recovery rate.
 3)     Payment to the      As per sugarcane control Sugarcane control order 1966 be
        sugarcane           order 1966, the sugarcane amended to facilitate instant payment
        growers             payments be made within of atleast 75%.
        (Ministry of        14 days from the date of
        Agriculture).       sugarcane delivery. But
                            the      sugar    factories
                            violating the norm and
                            effecting payment with
                            abnormal delay.
 4)     By-products,        Sugar factories are not       Sugarcane control order 1966 be
        co-generation,      manufacturing          by     amended stipulating manufacture of
        ethanol             products, which directly      minimum of 5 by-products by all sugar
        manufacturing –     affect the payment of         factories.
        Manufacturing       remunerative price to the
        (Ministry of        sugarcane grower.
        Agriculture and
        Petroleum)


      CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE              39
5)      Sugarcane            Sugarcane development           Sugarcane control order 1966, be
        development fund     fund is intended for            amended to utilize the fund for
        (Ministry of         sugarcane                 and   sugarcane    and     infrastructure
        Agriculture).        infrastructure                  development.
                             development. But this fund
                             is not utilized for the above
                             purposes.
6)      Research           No such new varieties are Research     be   strengthened      for
        (Ministry of       invented.                 inventing high yielding seed, short
        Agriculture).                                duration and moisture resistant crop.
         a) High yielding
            seed.
         b) Short duration
            crop
         c) Tissue culture

7)      Crop Insurance       The premium is on high          The premium be reduced, subsiding
        (Ministry of         side. All risks are not         by Govt. as in the case of other
        Agriculture).        covered.         Procedures     countries. Cumbersome procedures
                             adopted for indemnifying        adopted for indemnifying losses be
                             losses are against the          reviewed and crop losses indemnified
                             interest of farmers.            as in other sectors.
8)      Credit                The amount of loan  Scale of finance per acre be fixed
        (Ministry of           sanctioned per acre         depending on the actual cost of
        Finance).              differs from Rs. 12,000/-   cultivation  ranging      from Rs.
        a) Plantation          to Rs. 18,000/-             25,000/- to Rs. 30,000/-.
            Crop                                          Scale of finance per acre be fixed
                              The amount of loan
                               sanctioned       per acre   depending on the actual cost of
            b) Ratoon crop                                 cultivation  ranging      from Rs.
                               differs from Rs. 10,000/-
        .                                                  20,000/- to Rs. 25,000/-.
                               to Rs. 15,000/-

9)      Rate of Interest     Different     banks     are Uniform rate of Interest of 4% be
        (Ministry of         adopting different rates of fixed.
        Finance).            Interest ranging from 7% to
                             14%.
10)     Sugar Imports &      Sugar export and import         The long-term import and export
        Exports (Ministry    policy is not based on          policy be evolved based on the supply
        of Commerce).        demand and supply basis.        and demand position for protecting
                             The short term policies         the interest of farmers.
                             adopted are benefiting
                             importers,       exporters,
                             middle-men      and      the
                             farmers are put to incurring
                             repeated losses.




      CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE               40
                         ISSUES CONCERNING STATE GOVERNMENT
S.No.           Issues                  Present Position             Demand by Commodity Council
 1)     MINISTRY OF SUGAR        The State Governments are          Mandatory      provisions be
        a) Fixing State          announcing additional price,       evolved for paying State
        Advisory price (SAP)     in addition to MSP to Paddy,       Advisory Price to farmers by
        to Sugarcane.            Wheat & Cereals etc.,              sugar factories.
                                 whenever the farmers obtain
                                 remunerative prices. Similar
                                 facility is not extended to
                                 sugarcane.
        b) There is no           The ministry of sugar deals        The sugarcane Development
        department for           with     sugar.   No    sugar      Ministry be created by all State
        sugarcane                development activities are         Governments for providing
        development              taken up by this department.       extension      services       to
                                                                    sugarcane growers.
 2)         MINISTRY OF          The sugarcane growers are          Innovative     and      modern
            AGRICULTURE          using traditional implements       implements be invented for
                                 for cutting and harvesting         cutting     and      harvesting
        Modern Implements
                                 sugarcane. It consumes             sugarcane and the implements
        for cutting and
                                 more man hours and also            provided on subsidized rates.
        Harvesting sugarcane
                                 physical drudgery on the part
                                 of labour.
 3)         MINISTRY OF          Many of the Commercial             An action plan be evolved by
           CO-OPERATION          Banks      have      no    rural   State Governments to provide
                                 branches.       The sugarcane      credit     requirements       to
        Credit by co-operative   growers are depending on           sugarcane growers since the
        institutions             co-operative institutions for      repayment is assured by sugar
                                 credit facilities, but they are    factories on behalf of farmers.
                                 unable to meet the credit          Necessary credit facilities be
                                 needs of sugarcane growers.        provided to sugar factories also
                                                                    to facilitated processing of
                                                                    sugarcane and settling farmers
                                                                    accounts expeditiously.
 4)     MINISTRY OF FORESTS The sugarcane crop is                   The protection mechanism be
                            destroyed by wild animals               evolved by State Governments
        Menace of Wild
                            extensively.                            for protecting sugarcane crop
        animals
                                                                    by wild animals.
 5)         MINISTRY OF          The State Governments are          The collection of Cess / Tax on
         COMMERCIAL TAXES        collecting Cess / Tax on           sugarcane be waived.
                                 Sugarcane       from    sugar
        Cess /Tax on
                                 factories. The tax collected
        Sugarcane.
                                 ranges from Rs. 15/- to Rs.
                                 60/- per tone of sugarcane.
                                 The A.P. is collecting tax at
                                 Rs. 60/- per tone.        The
                                 collection of higher tax by
                                 State Govt. prevent the sugar
                                 factories to offer remunerative
                                 price to the sugarcane grower.


      CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                 41
                          ISSUES CONCERNING PRIVATE SECTOR
S.No.            Issues               Present Position             Demand by Commodity Council

 1)     Extension services     The State Governments are          Action plan be evolved by
                               unable to provide agri             Agriculture         Universities,
                               extension     services.   The      Research centers and Industry
                               posts created are vacant.          to provide agri extension
                               When the crops are infested        services to farmers.
                               the farmers are not only
                               affected by crop losses but
                               also incurring expenditure for
                               purchasing pesticides etc.,
                               suggested by dealers.
 2)     Credit                 The banks provide only 25 %        A pool proof mechanism be
                               to 30 % of credit needs of         evolved for containing charging
                               agriculture.    The      private   of higher rate of interest by the
                               money lenders, traders and         private money lenders, traders
                               input dealers provide the          and input dealers.
                               balance of 70% to 75% with
                               higher rate of interest ranging
                               from 36% to 48%.
 3)     Spurious fertilizers   The markets are flooded with       A definite plan of action be
        and pesticides         spurious     fertilizers and       evolved by the inputs industry,
                               pesticides. Taking advantage       by strengthening vigilance, to
                               of innocence / ignorance of        eliminate spurious fertilizers
                               farmers the traders are            and pesticides.
                               manipulating the issues to
                               the disadvantage of farmers.
 4)     Marketing              The market yards are               The private market yards be
                               dominated by middle men,           established with infrastructure
                               traders. The committees            facilities for processing, value
                               appointed      by     the          addition, packing and retail
                               governments for managing           marketing to enable the
                               the affairs are unable to          farmers to obtain remunerative
                               protect the interest of            prices.
                               farmers.
 5)     Manufacture of         The farmers are using              Innovative     and      modern
        Innovative and         traditional implements for         implements be invented for
        Modern implements      agricultural operations and        agriculture   operations and
                               harvesting       crops.   It       harvesting     crops      which
                               consumes more man hours            facilitate  quick    agriculture
                               and also physical drudgery         operation and reduce physical
                               on the part of labour.             drudgery.




      CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                42
15. CIFA – ITS POLICY, ADVOCACY AND LOBBYNG INITIATIVES



       MEMORANDUM SUBMITTED TO Dr. VIJAY KELKER, CHAIRMAN,
           EXPERT GROUP FOR DEVELOPMENT OF SUGAR SECTOR
         ON 9th OCTOBER, 2007 DURING HIS VISIT TO BANGALORE.



       At the out set, the Federation of Farmers Associations (FFA), Hyderabad
invites your appointment as Chairman, Expert Group for sugarcane development.
The meetings organized by you, quickly, exhibit your anxiety on the problems
confronted by sugarcane farmers and sugar industry. We are sure that your
experience as Secretary, Finance, GOI and your outlook over agriculture
development would facilitate to pull out sugar sector from existing crisis.


       You are aware that sugarcane industry is the 2nd largest Agro based industry
in India, next to cotton textiles. 50 million farmers & their dependents are involved in
sugarcane cultivation. And about 0.5 million skilled & semi skilled workmen mostly
from rural areas are engaged in sugar industry.


       There was encouraging production of 18.9 million tonnes sugar in 2005-06
coupled with a carry over stock of 4.825 million tonnes, while the demand was only
18.5 million tonnes. The production from the following season was expected about
24 million tonnes.


       On the prices front there was no major concern. The domestic retail prices
were around Rs.20 a kg. During that period the global prices were ruling high at
around 418 dollars a tonne on FOB basis. At that stage during July,2006, abruptly,
the GOI imposed ban on export of sugar and the sugar industry was prevented from
obtaining lucrative price. The short cited decision not only affected the industry but
also thrown the sugarcane farmers into crisis.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                43
      Bumper sugarcane harvest is reported during the current season. The
sugarcane out put is also estimated to be abnormally increased. But sugar factories
were reluctant to extend the crushing season due to the losses suffered consequent
on imposing ban on export of sugar and also anticipated lesser recovery rate due to
prolonged period of crushing. The sugarcane is a long duration crop, farmers made
higher investment, sugar mills were reluctant to continue crushing operations and the
sugarcane farmers resorted for committing suicides in the States of Andhra Pradesh,
Karnataka, Maharastra and Madhya Pradesh.



 AS DESIRED BY THE EXPERT GROUP WE SUGGEST THE FOLLOWING ACTION POINTS
       FOR REHABILITATING SUGARCANE FARMERS AND SUGAR INDUSTRY.


ISSUES PERTAINING TO SUGARCANE FARMERS
1. An action plan be evolved for making payments to sugarcane farmers who
   supplied sugarcane to sugar mills.
2. “L” profits pending declaration from the year 2003-04 may immediately be
   declared and payments effected to sugarcane farmers.
3. Irrational provisions of sugarcane control order 1966 which are coming in the way
   of fixing remunerative price to sugarcane should be deleted.
4. Confronted by various problems, the sugarcane farmers suffered huge losses and
   unable to repay the bank loans. Therefore, the interest payable on sugarcane
   production loans be waived and principle amounts rescheduled facilitating
   repayments in the ensuing 5 years.
5. Due to increase in the wages of agriculture labour cost of harvesting has been
   abnormally increased. Hence innovative agricultural implements be provided to
   farmers on subsidized rates.
6. The sugar mills in Maharastra and Gujarat are taking field delivery of sugarcane.
   The sugarcane farmers of other States incurred huge expenditure towards
   harvesting and cutting charges. The GOI should organize payment of harvesting
   and transport incentive amounting to minimum of Rs.250/- per tonne.
7. The sugarcane farmers should be provided loans from sugarcane development
   fund by simplifying loaning procedures.




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE             44
8. The sugarcane price be fixed based on the actual cost of cultivation by adding
     minimum 50% of the actual costs incurred as recommended by Professor.
     M.S. Swaminathan, Chairman, National Commission on farmers.
9. As per provisions of sugarcane control order 1966 the payments should be made
     to sugarcane farmers within 14 days from the date of supply of sugarcane to the
     mill. This provision has not been complied and farmers are required to wait longer
     periods for payments. In such a situation, the sugar mills should pay interest for
     the delayed period to the sugarcane farmers.
10. Some of progressive sugarcane farmers are obtaining a yield of 100 tonnes, per
     acre, by adopting innovative culture practices. Sugarcane extension services
     should be strengthened and programmes initiated for replicating such established
     innovative culture practices.
11. The crop insurance premium fixed for sugarcane is on high side and all risks from
     planting to harvesting and delivery are not covered. Farmer friendly scheme be
     introduced.
12. The levy of multiple taxes on sugarcane should be dispensed with since it is
     coming in the way of paying remunerative prices to sugarcane.

FINANCIAL HEALTH OF SUGAR MILLS FACILITATE PAYMENT OF REMUNERATIVE PRICE
 AND PROVIDING OF OTHER SERVICES TO SUGARCANE GROWERS. THE FOLLOWING
       SUGGESTIONS ARE MADE REGARDING SUGAR MILLS DEVELOPMENT

1.    Accumulation of sugar stocks result financial stress on the industry. This is due
      to unstable policies adopted by GOI like imposing ban on sugar exports.
      Therefore, the GOI should immediately take steps to dispose the surplus sugar
      stocks by way of extending incentives to cover the difference in market price so
      that the industry can concentrate on the ensuing years production and also
      effect payments to the sugar farmers, instead of creating buffer stocks.

2.    The GOI should evolve an action plan for assessing sugar requirements, in the
      country both for business and individual consumers. Based on the sugar
      requirements, the sugar mills can crush the sugarcane to the extent of sugar
      requirements and the balance be diverted towards manufacture of ethanol. Out
      of the total sugar consumption in the country only 20% is consumed by
      individual consumers and 80% by business consumers (55% sweet shops, 15%



CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE               45
     soft drinks and 10% biscuits and chocholates). The government should procure
     20% of sugar required for individual consumers and business consumers may
     purchase the same from open market. The sugar industry may be permitted to
     dispose sugar in open market by exempting sugar from essential commodities.

3.   An action plan be evolved to convert sugar industry into sugar complexes by
     encouraging manufacture of ethanol, co-generation and by-products. Similarly,
     the industry may be advised to produce sugar confirming to ICUMSA norms of
     importing countries, including raw sugar.

4.   The GOI should evolve long term export policy to create confidence among
     importing countries about the continuity of supply of sugar.

5.   The sugar mills be provided loans from sugarcane development fund at
     concessional rate of interest for modernizing the machinery and taking up
     developmental programmes.

6.   Co -generation be made mandatory in all sugar factories. The GOI and State
     governments should adopt liberal policy to encourage green power in rural
     areas, by providing incentives to sugar mills.

7.   Ethanol doping has assumed significance through out the world not only in view
     of the spiraling crude oil prices but also being an excellent oxygenate and
     octane booster. The GOI should adopt a policy of doping atleast 10% ethanol
     with petrol forth with, simultaneously advising the automobile industry suitably.

8.   Food processing industry status be given to the sugar industry.




                                     




CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS – STATUS PAPER ON SUGARCANE                46

				
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