Policy issues and constraints in realising the business potential of sugarcane based agriculture in Odisha state

The major constraint identified in intensive sugarcane agriculture in the state of Odisha is the small size of the sugar plants with old machinery and having very low cane crushing capacity of 1250 to 2500 TCD in contrast to average 7000 TCD at the national level. Associated with it, the second major constraint is the lack of appropriate extension capacity and approach for the dissemination of high yielding varieties and more remunerative improved production technology. The other constraints include farming under lease terms; growing of old and rejected varieties, and shortage of quality planting materials; lack of easy credit facilities, shortage of appropriate training facilities, and procurement related problems. These constraints, along with recurrent droughts and farmers; dependency on the monsoon, have resulted in occasional shifts in the area under sugarcane to other crops, and ultimately led to the closure of some very small sized and non-viable sugar mills. The revival the old and defunct sugar mills either through sale to private sector or its modernization by the state is the main policy issue for successful sugarcane cultivation. Sugar complexes instead of a standalone sugar mills are needed. The quality of sugarcane extension services is the other main issue. Proper technological backstopping of sugarcane agriculture from research organizations and NGOs is required. Collaborative efforts of stakeholders (research organizations, sugar mill and the State Government) in the form of a signed MOU for targeted extension efforts, appropriate farming practices, proper selection and availability of sugarcane variety and awareness creation among farmers are required. Collaborative efforts helped in encouraging quality seed production as well as quality as well frequent mismatch between demand & supply both spatially & over time. But still there is a lot of faith in country’s potential & strongly believe that making the right information available to our farmers regarding best practices & market prices having a set of people dedicated to guide them at every step, can make the farmers achieve much better yields ,higher profits, hence improve their conditions. A no. of such initiatives have been taken up by the government, NGOs & private sector in this direction as well.