Cooperative sugar mills call cane worker exploitation reports a 'conspiracy'

The National Federation of Cooperative Sugar Factories (NFCSF), an organization representing cooperative sugar mills in India, has strongly denied reports in the US media about the exploitation of sugarcane harvesting workers in Maharashtra. Federation Chairman Harshvardhan Patil labelled the reports a "conspiracy" against the sugar industry.

NFCSF President Harshvardhan Patil said that there is an attempt to target sugar mills in Maharashtra through false allegations of worker harassment. Speaking at a press conference in New Delhi, he suggested that misleading reports of cane worker exploitation, published in a major American newspaper, are possibly part of a conspiracy to discourage multinational companies like Coca-Cola and Pepsi from purchasing sugar from Maharashtra's mills, with NGOs allegedly supporting these claims.

Investigation Underway

Reports in the US media were published about the exploitation of sugarcane harvesting workers in Maharashtra. Patil dismissed the allegations as far from reality. The Federation has already contacted the US Consulate, the Union Home Ministry, and the Prime Minister's Office, and an investigation is underway. The NFCSF claimed that, aside from a few isolated incidents, sugar mills in Maharashtra provide comprehensive support to workers, including shelter, food, timely payments, education for children, and health insurance. Patil maintained that the allegations were baseless and suggested the investigation might reveal those involved in the conspiracy.

Concerns for the Sugar Industry

Maharashtra has 205 sugar mills, of which 105 are cooperatives. Approximately 65% of India’s domestic sugar market sale goes to major industrial buyers such as cold drink manufacturers, biscuit, sweets and confectionery makers. Patil warned that if American companies like Pepsi and Coca-Cola avoid buying sugar from Maharashtra's mills, it could lead to a crisis for the state's sugar industry. He alleged that this could be an orchestrated effort to shift major buyers from Maharashtra and Gujarat to north Indian states.

Plan to Purchase Harvesters

Patil noted that due to better education, many sugarcane harvesting workers have transitioned to other jobs, reducing their numbers from 1.5 million a decade ago to 7 lakh today. To address this, the Federation plans to increase the use of harvester machines for sugarcane harvesting. A proposal to purchase 10,000 harvesters has been submitted to the National Cooperative Development Corporation (NCDC), seeking a 90% loan from the NCDC, with the remaining 10% funded by the mills. However, the plan hinges on the central government providing a 50% subsidy on harvesters, which would enable loan repayment within five years.

Patil explained that Maharashtra has 105 cooperative sugar mills, Karnataka has 50, and Gujarat has 28. These mills currently take responsibility for harvesting sugarcane. He warned that conspiracies against Maharashtra's cooperative mills could jeopardize the entire cooperative sugar industry. In northern states like Uttar Pradesh, farmers are responsible for delivering sugarcane to the mills. If the crisis deepens, Maharashtra may need to adopt a similar system, which could create new challenges for farmers.

NFCSF's Demands

The NFCSF has urged the government to increase the minimum selling price of sugar, permit the export of 1.5 million tonnes of surplus sugar, and raise the ethanol purchase price, as the industry estimates a sugar surplus of 70-75 lakh tonnes by the season's end.