Is Sugarcane Cultivation in TN's Namakkal Declining?

Synopsis
Key Takeaways
- Sugarcane cultivation in Namakkal is declining due to economic challenges.
- Farmers are shifting to more profitable crops like bananas.
- Production costs are rising, impacting farmers' profitability.
- Government incentives are delayed, affecting farmers' livelihoods.
- Modernization of sugar mills is essential for sustainability.
Chennai, Sep 25 (NationPress) The cultivation of sugarcane in Tamil Nadu's Namakkal district, once a crucial source of livelihood for numerous farmers, is experiencing a significant downturn as growers transition to more lucrative options like bananas and other fast-growing crops.
This crop, traditionally cultivated in regions such as Jedarpalayam, Paramathi Velur, Mohanur, and Senthamangalam, has seen a decline in economic viability due to escalating production costs, unpredictable returns, and delayed payments from sugar mills.
The land devoted to sugarcane has diminished to approximately 12,000 acres, a mere third of its former size, with only a quarter of farmers still engaged in its cultivation. The Salem Cooperative Sugar Mill, which processed around four lakh tonnes annually until 2017, saw its output plummet to just 1-1.15 lakh tonnes in the 2024-25 season, barely 25 percent of its capacity.
Farmers report that the expenses related to production have surged due to increased labor costs, fertilizer prices, irrigation needs, and electricity expenses. The procurement prices hover between Rs 3,200 and Rs 3,350 per tonne, while sporadic private offers reaching Rs 4,500 per tonne are infrequent and unreliable. Last year, some farmers encountered payment delays stretching up to six months, disrupting their cash flow and complicating the sustainability of their crops.
Despite the state government's announcement of an incentive of Rs 349 per tonne and a promise to enhance total returns to approximately Rs 4,000 per tonne, delays in implementation have left farmers in a precarious position.
The Salem Cooperative Sugar Mill, reliant on machinery dating back to 1964, continues to function without significant upgrades, resulting in subpar crushing efficiency. The current recovery rate – sugar extracted from cane – is only 7.7 percent, translating to 77 kilograms of sugar per tonne. In contrast, states like Maharashtra achieve nearly 13 percent due to superior crop varieties and favorable climatic conditions.
The lower recovery rates not only diminish farmer profits but also jeopardize the mill's financial sustainability.
Experts point out that the lengthy cultivation cycle of sugarcane makes it less appealing compared to crops that yield two or three harvests annually. Additionally, pest infestations, seasonal changes, and crop diseases have exacerbated the risks involved.
As profit margins shrink and costs rise, many farmers are opting for bananas and other crops that offer quicker returns and steadier markets. Unless there are urgent reforms in pricing, timely payments, and modernization of sugar mills, sugarcane may continue to vanish from Namakkal's agricultural landscape, undermining a long-standing tradition and affecting the region's rural economy.