61 contestants with links to sugar mills reflect hold over Maharashtra politics
In Maharashtra’s 2024 elections, 61 candidates linked to sugar mills are contesting, reflecting the close ties between politics and the sugar industry. The BJP has approved Rs 2,400 crore in loans for struggling mills linked to Mahayuti candidates. Sugar millers also demand a hike in the minimum support price (MSP) for sugar to address industry losses.
Kolhapur: Across 55 assembly constituencies of the 288 in the state, prominent political parties have fielded 61 candidates directly, and a few in a roundabout way, connected with sugar mills either held privately or as cooperatives.It reflects the symbiotic relationship between the sugar industry and electoral politics in Maharashtra.The ruling Mahayuti has 31 candidates, the highest number associated with sugar mills. With 26 contestants, Mahavikas Aghadi is nearly catching up.The candidates are either chairmen, directors or immediate relatives like sons and daughters of prominent leaders controlling sugar mills. The sugar industry has a total annual turnover of around Rs 48,000 crore and nearly 40-50 lakh cane farmers are suppliers to these mills.
Close to two crore voters are associated with the sugar industry. Western Maharashtra is heavily dominated by politicians linked to sugar mills which has grown to encompass the Marathwada region.The association of politicians with the sugar industry started in 1960s when the state allowed the setting up of 12 sugar factories in the cooperative sector. The first one was set up by Vitthalrao Vikhe Patil in Pravaranagar. Vijay Autade, a sugar industry expert based in Kolhapur, said after 1980, politicians began to understand the electoral benefit of the cooperatives in general and sugar cooperatives in particular. They leveraged the political influence they had and got irrigation schemes approved to set up the sugar industry.”It provides a direct connection to thousands of farmers and it is fairly easy to control the politics. Hence, political parties have candidates associated with sugar mills on the top of their minds while distributing poll tickets,” he said.Control of the sugar industry also propelled the growth of political dynasties, especially in western Maharashtra with at least three generations reaping the benefits.Will loans help Mahayuti politicians?After 2014, conscious efforts by the BJP led to its gaining ground in the Congress and undivided NCP bastions.
Now, in 2024, both NCPs dominate the electoral-sugar industry landscape with 24 candidates in the fray associated with sugar mills.The Centre has approved nearly Rs 2,400 crore to 16 sugar mills prominently liked to Mahayuti candidates just before the assembly election.These mills have mounting financial troubles due to poor management and are in dire need of funds to repay the farmers. The BJP-led central govt through National Cooperative Development Corporation has extended the loans with state govt’s guarantee to avoid cane farmers’ anger. Autade said that the loans cannot be used to instal new infrastructure but should be used to pay salaries and carry out maintenance works in the mills. “Five or ten years down the line, if the mismanagement continues, then cooperatives will be bought by politicians and turned into private entities. Nearly half the existing private mills were cooperatives once. Some will pull through, but many will not, and in that case the political passage through the sugar mill route will be closed.
Then, politicians have to find something else to hold their political dominance,” Autade added.Demand To Hike MSP Falls On Deaf EarsSugar millers’ associations have been crying hoarse for an increase in the minimum support price of sugar (MSP). It has not been hiked since 2019 while the price to be paid to the farmers (FRP) has increased consistently.Deputy chief minister Ajit Pawar has said that he has had discussions with Union cooperative minister Amit Shah who has assured him that a decision on hiking the MSP will soon be taken.The hike is necessary to make up for the losses the industry has faced due to restrictions on ethanol production and higher FRP payment. B B Thombare, president of Western India Sugar Millers Association, said, “We have demanded a hike in MSP, or else the mills will not begin crushing the cane.”The season for 2024-25 will start on November 15, but till the election is over, millers will not start crushing.
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