August 14, 2008
Sugarcane doubles as cattle feed in India''s drought-hit state
Near-drought conditions many parts of Maharashtra state in India have forced the dairy sector to switch to sugarcane as cattle fodder since dried grass have all but run out.
Following the increased demand, sugarcane prices in Maharashtra, the country''s largest sugar producer, have almost doubled from the usual Rs. 750 to as high as Rs. 1,300 per tonne, close to grass, which costs Rs. 1,400/tonne.
The unprecedented entry of dairy producers into the sugarcane market has heightened the competition for sugar companies trying to gain access to the sugarcane supply in the state, thus pushing up prices.
Still, prices are cheap compared with manufactured feed, which costs as much as Rs. 6,500 a tonne.
Farmers usually stockpile dry fodder for summer months when there is a shortage of green fodder. However, that supply has been exhausted and scanty rains meant green fodder is lacking, according to Vinayak Patil, chairman, Maharashtra State Co-operative Milk Federation.
The state government has been setting up fodder depots for the state''s 3 million cattle farmers in dry areas and was also buying cane as cattlefeed from farmers, according to the animal husbandry department.
The Maharashtra State Co-Operative Sugar Factories Federation Ltd (MSCSFF), said the new competition for sugarcane meant cane availability for this year''s crushing season is expected to go down to 50 million tonnes out of total cane production of 54.4 million tonnes.