Maharashtra Sugar Mills and Mechanisation in Cane Harvesting

Table of Contents

Background

The sugar industry in Maharashtra has faced recurring labour shortages for harvesting operations, primarily due to:

The drudgery of manual cane harvesting.
Alternative employment opportunities in other sectors (in construction, manufacturing and informal services).
Welfare schemes (MGNREGA, free food and direct cash transfers)
These factors have raised the opportunity cost of agricultural labour.

To address these challenges, sugar mills in Maharashtra have increasingly turned to mechanical cane harvesters as a sustainable solution.

Current System of Labour-Driven Harvesting

Labour Dependency: Cane harvesting is coordinated through muqaddams (contractors), who recruit and supervise labour gangs (tolis) of 10 man-woman pairs.
- Harvesting labourers are paid ₹366/tonne, with a 20% commission to the muqaddam.
Labour Dynamics: Maharashtra has around 12-12.5 lakh cane-harvesting labourers, mostly migrants from economically weaker districts like Beed, Hingoli, and Nanded.
- Challenges include ageing labour force, irregular availability, and increased absenteeism during events like elections.
Limitations: Labour shortages disrupt cane crushing schedules.
- Manual harvesting leaves 4-6 inches of cane uncut, reducing sugar recovery rates.

Shift to Mechanical Harvesting

Pioneering Effort: The Manjara Farmers’ Cooperative Sugar Factory in Latur began deploying mechanical harvesters in 2020-21.
- By 2023-24, 93% of its total cane was mechanically harvested using 55 machines.
Mechanisation Model: Machines are owned by the mill or private entrepreneurs who are provided loans by the Latur District Central Cooperative Bank (LDCCB) with guarantees from the factory.
- Owners of machines are paid ₹475/tonne, higher than the labour rate of ₹439/tonne.
Cost Efficiency: Machines reduce dependency on labourers and cut operational costs.
- Labour management staff requirements dropped significantly from 80-100 to 24-25 people.

Economic and Environmental Impacts

Farmer Benefits: Mechanisation increases efficiency, reducing the time and cost associated with cane harvesting.
- Farmers receive better recovery rates as machines cut the entire cane.
Environmental Impacts: Cane tops chopped by machines act as mulch, enhancing soil organic matter and reducing water loss.
Challenges: Cane tops, a critical source of fodder for livestock, are pulverised during mechanical harvesting, making them unsuitable for feeding animals.

Future Prospects and Expansion

Scalability: The Manjara Group aims for 50% mechanical harvesting across its other nine mills by the 2024-25 season.
- Other factories like Natural Sugar & Allied Industries Ltd project a gradual shift, targeting 50% mechanisation in five years.
Sustainability: Mechanisation is seen as inevitable, offering a long-term solution to labour shortages and improving sugar recovery rates.

Conclusion

The Maharashtra sugar industry’s move towards mechanisation demonstrates a pragmatic response to rural labour challenges. While mechanical harvesting is transforming the sector, balancing efficiency with concerns like livestock fodder needs and high initial investment costs remains crucial. This case highlights the need for integrated solutions to ensure both economic and social sustainability in the agricultural sector.