In Tamil Nadu’s Namakkal district, sugarcane farming—a backbone for thousands of local farmers—is fading fast. Growers are ditching it for more lucrative options like bananas and quick-turnaround crops that promise better profits and less hassle.
Once thriving across spots like Jedarpalayam, Paramathi Velur, Mohanur, and Senthamangalam, sugarcane now covers just 12,000 acres—down to a third of its peak. Only about a quarter of farmers stick with it these days.
Take the Salem Cooperative Sugar Mill: It used to crush nearly 400,000 tonnes of cane each year until 2017. But for the 2024-25 season, output plunged to 100,000-115,000 tonnes, running at a mere 25% capacity. That’s a tough blow for everyone involved.
Farmers point to skyrocketing costs as the main culprit. Labor wages, fertilizer bills, irrigation demands, and power expenses keep climbing. Meanwhile, mills pay just Rs 3,200 to Rs 3,350 per tonne—occasional private deals hit Rs 4,500, but they’re few and far between. Last year, some growers waited up to six months for payments, crippling their finances and making sugarcane feel like a gamble.
The state government stepped in with a Rs 349 per tonne incentive, aiming to push total returns toward Rs 4,000. But rollout delays have left many farmers high and dry, still grappling with low yields and uncertainty.
Adding to the woes, the Salem mill relies on 1964-era machinery with no big upgrades. This drags down efficiency, with a sugar recovery rate of just 7.7%—that’s 77 kg of sugar per tonne of cane. For comparison, Maharashtra mills hit nearly 13% thanks to superior crop varieties and weather perks. Low recovery means slimmer profits for farmers and shaky finances for the mill.
Experts say sugarcane’s long growth cycle—just one harvest a year—makes it a risky bet compared to crops offering two or three cycles. Pests, diseases, and weather swings pile on the challenges.
With returns shrinking and costs soaring, Namakkal farmers are switching to bananas and similar options that deliver faster cash and reliable markets. Without quick fixes like fairer pricing, on-time payments, and modernized mills, sugarcane cultivation in Tamil Nadu could vanish from the scene, upending a cherished rural tradition and hitting the local economy hard.
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