Higher cane prices draw Karnataka border farmers to Maharashtra sugar mills
Karnataka’s Athani sugarcane growers are increasingly supplying Maharashtra mills in Sangli and Kolhapur, attracted by higher payments and timely settlements. Maharashtra factories offer Rs 4,200 per tonne, compared with Karnataka’s Rs 3,600–3,750, raising concerns over cane availability for border-area mills.
Belagavi: Sugarcane growers in Karnataka’s border areas, particularly Athani taluka, are increasingly supplying their produce to sugar factories in Maharashtra’s Sangli and Kolhapur districts, attracted by higher initial payments and assurances of timely settlement of cane bills.
The difference in sugarcane prices and uncertainty over the payment of subsequent instalments by Karnataka factories have influenced farmers’ decisions this season. Although Karnataka mills are offering an initial price of Rs 3,600 to Rs 3,750 per tonne, growers are increasingly considering Maharashtra factories, which have announced a higher payment structure.
Maharashtra sugar factories have announced an initial payment of Rs 3,900 per tonne, followed by Rs 100 as the second instalment and Rs 200 as the final instalment, taking the total price to Rs 4,200 per tonne. In comparison, Karnataka factories have yet to provide similar certainty over the payment of the remaining instalments.
Maharashtra mills are also assuring farmers that cane bills will be credited to their bank accounts within 15 days of supply. Their willingness to accept sugarcane without deductions and provide harvesting and transportation arrangements has further encouraged growers to shift their supplies across the border.
Representatives of Maharashtra sugar factories, including officials, employees and harvesting contractors, are contacting farmers in Athani to secure sugarcane supplies by offering better prices and timely payments.
The movement of sugarcane is not limited to Athani. Growers in Kagwad, Raibag and Jamkhandi may also consider supplying their produce to factories in Sangli and Kolhapur, potentially affecting cane availability for mills in Karnataka’s border districts.
Sugar factories in both states are competing to secure supplies as the crushing season gathers pace. Farmers are comparing the initial cane price, payment schedule and transportation costs before deciding where to supply their produce.
The extent of sugarcane diverted to Maharashtra will determine how much cane remains available to factories in Karnataka’s border areas during the current crushing season.
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Source : ChiniMandi
