Gujarat cooperative sugar mill sets highest cane price, outpaces Maharashtra mills
A Gujarat-based cooperative, Sahakari Khand Udyog Mandal Ltd, set a national benchmark by offering ₹4,701/tonne cane price in 2025–26. Strong recovery and performance boosted payouts, highlighting pricing gaps with Maharashtra mills despite higher recovery there, sparking debate over farmer returns and industry practices.
A cooperative sugar mill in Gujarat’s Navsari district has reported strong performance in the 2025–26 season, offering what is being described as the highest cane price in the country.
Sahakari Khand Udyog Mandal Ltd, based in Gandevi, crushed 701,685 tonnes of sugarcane during the recently concluded season and produced 815,200 quintals of sugar. The mill announced a cane price of Rs 4,701 per tonne delivered to the factory, setting a new benchmark, Pudhari reported.
The mill also recorded an average sugar recovery rate of 11.63 per cent for the season.
Reacting to the development, farmer leader Sanjay Kole said the mill has maintained a two-decade-long record of offering some of the best cane prices in the country. He added that several cooperative sugar mills across Gujarat have consistently paid competitive rates to farmers.
Kole, however, criticised sugar mills in Maharashtra, particularly in districts such as Sangli, Satara and Kolhapur. He said that despite higher sugar recovery levels of over 12.5 per cent in these regions, mills there have lagged in offering better cane prices.
He alleged that both cooperative and private mills in Maharashtra have failed to match Gujarat’s pricing, even as farmers continue to face lower returns.
According to available data, other sugar mills in Gujarat have also announced competitive cane prices. The Bardoli Sugar Factory has declared rates ranging from Rs 3,672 to Rs 3,872 per tonne, while mills in Kamrej, Sayan, Madhi, Chalthan, Mahua and Narmada have announced prices within a similar range, despite having lower sugar recovery rates.
For the 2025–26 season, the Gandevi mill had initially announced a base price of Rs 3,270 per tonne at the start of crushing in October 2025, after accounting for harvesting and transport costs. It later increased payments by Rs 100 for February cane and Rs 200 for March supplies.
Kole said the final payments before Diwali are expected to add between Rs 1,231 and Rs 1,431 per tonne, further raising farmer earnings.
He also dismissed claims by some Maharashtra mill operators that paying Rs 3,500 per tonne had resulted in losses, calling such statements misleading. He advised farmers to be cautious about taking large upfront payments, saying it may not always be beneficial in the long run.
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Source : Chinimandi
