THE exercise undertaken to boost sugar production and revive the sugar factory in the state has started yielding results. The loss-making Sanjivani sugar factory is on its way to a turnaround, with 2009-2010 un-audited figures showing a minor loss of just Rs 24 lakh. How could a factory which incurred a loss of Rs 5.30 crore in 2008-09 and  Rs  7.60 crore in 2007-08 do it? The quantum of sugarcane crushed has been on a constant decline.

Sugarcane production in the state was 1,92,685 quintals in 2006-07, which dropped to 1,46,155 quintals in 2007-08 and further to 94,045 quintals in 2008-09. Within two financial years, sugarcane production declined by nearly 60 per cent. The factory obviously did not suffer a significant loss as sugarcane crushed by it during 2009-2010 was not sufficient. Significantly, the supply of sugarcane from the neighbouring state Karnataka has also come down. Statistics suggest that the amount of loss is directly related to the quantum of sugarcane crushed. As the supply of the sugarcane was less in 2008-2009 the factory had to suffer comparatively small loss in comparison to 2007-2008.           
Sugar production is dependent upon supply of sugarcane and as there is less production of sugarcane in the catchment area, production of sugar has naturally decreased. The other reasons for decline of the sugar production at the Dharbandora- based sugar factory are increased cost of production and non-availability of labourers for harvesting. Unless sugarcane production receives a major boost, an increase in the support price would cease to serve the purpose. The support price would work only if the farmer has sufficient amount of sugarcane to sell. It is an irony that the recovery rate of sugarcane in Goa is around 7 to 8 per cent in comparison to 10 per cent and above in the rest of the country. It is good that the Sanjivani sugar factory has come out with a scheme to induce farmers to increase the RR of their sugarcane and they will get 2 per cent more on the assured price of sugarcane if they have RR between 9 and 9.5 per cent.
Rather than feeling complacent for the reasons that do not reflect structural improvements in the ground realities, the government should seriously look into the problems farmers face. Sugarcane is grown in about 2,000 ha in the state, with annual yield at 84,000 tonnes and average productivity of 45-50 mt/ha with a recovery of 8.5 per cent, which is very low. The state has a sugar factor with the minimum crushing capacity of 1.5 lakh tonnes. To overcome the crisis and for coming out of the red it is imperative that the optimum capacity of the factory should be utilised. The state cane meets below 50 per cent of the factory’s need, the rest coming from neighbouring states. This is not only uneconomical but also injurious to the interests of local cane growers. To accomplish the task the government ought to change its approach and attitude to farmers and sugarcane production. Even after being aware that sugarcane needs a good amount of water, good soil and adequate fertiliser the government has not made any significant move to mitigate their problems. The sooner the government realises this, the better it would be in the interest of Goa and cane growers.