The National Federation of Cooperative Sugar Factories Ltd (NFCSF) on Thursday strongly refuted allegations of exploitation of sugarcane harvesting labourers in Maharashtra in a US media report, calling it a "conspiracy" to damage the Indian sugar industry.
NFCSF President Harshvardhan Patil warned that the "misinformation" could potentially disrupt sugar sales, particularly among major buyers like Coca-Cola and Pepsi, who might be pressured to avoid purchasing sugar from Maharashtra and Gujarat.
"The media report is far from ground realities," Patil told reporters, emphasising that the federation has already reached out to the US Consulate, Union Home Ministry, and Prime Minister's Office. An investigation is currently underway.
Explaining the unique harvesting practices, Patil highlighted the difference between southern and northern states. In Maharashtra and Gujarat, manual harvesting remains prevalent, with skilled workers supplied by middlemen called 'mokadam' who are responsible for recruiting and transporting labourers.
The federation claimed that despite potential isolated incidents, sugar mills are providing comprehensive support to workers, including shelter, food, timely payments, children's education, and health insurance.
Addressing potential long-term solutions, NFCSF has sought a loan from the National Cooperative Development Corporation (NCDC) to purchase cane harvesters, noting a significant workforce reduction from 15 lakh workers a decade ago to approximately half that number currently.
In addition to defending worker conditions, NFCSF has demanded government intervention in hiking the minimum selling price of sugar, allowing the export of 15 lakh tonnes of surplus sugar and raising ethanol purchase prices.
According to the NFCSF, the country's total sugar production has fallen to 7.01 lakh tonnes by November 15 in the 2024-25 season, compared to 12.61 lakh tonnes in the previous year. Total sugar output is projected at 280 lakh tonnes, down from 319 lakh tonnes in 2023-24.
With an estimated 40 lakh tonnes of sugar earmarked for ethanol production, the industry anticipates a surplus of 70-75 lakh tonnes by season's end.
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