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Tamil Nadu Sugarcane Farmers Struggle as Soaring Labor Costs Threaten Viability

Sugarcane farmers in Tamil Nadu are raising alarms over skyrocketing labor costs, which are making cultivation financially unviable. During harvest, expenses can reach nearly one lakh rupees per acre, consuming a substantial portion of the income from the State Advised Price. Farmers and union leaders are urgently calling for sugar mills and the district administration to regulate charges or provide subsidies to offset the burden. However, mill officials note their ability to intervene is limited as farmers typically make individual labor arrangements.

Key Points: TN Sugarcane Farmers Hit by Rising Labor Costs, Seek Aid

  • Labor costs hit ₹1,200-₹1,400 per tonne
  • Harvesting expenses reach ~₹1 lakh per acre
  • Farmers seek regulated wages or subsidies
  • Sugar mills cite limited intervention scope
2 min read

TN: Rising labour costs push sugarcane farmers to brink​

Tamil Nadu sugarcane farmers warn of unsustainable cultivation as labor costs spike to ₹1,400-₹2,000 per tonne, eroding profits and demanding urgent intervention.

"If labour costs were even moderately bearable, farmers could still manage. But in the current situation, profits are steadily eroding - Karuppannan, Farmer"

Chennai, Jan 31

Sugarcane farmers across the region have raised serious concerns over the steep rise in labour costs, warning that the economics of cultivation are becoming increasingly unviable. ​

At a recent farmers' grievance day meeting, cultivators urged sugar mills and the district administration to step in - either by regulating labour charges or by extending targeted subsidies to offset mounting expenses. ​

Explaining the financial strain, Karuppannan, a farmer, said sugarcane cultivation begins with heavy borrowing. ​

"A farmer typically avails a crop loan of around Rs 70,000 just for planting, fertilisers, and pesticides. When harvest begins, the burden becomes unbearable," he said. ​

According to him , farmers now spend nearly Rs 1,200 per labourer per tonne of sugarcane during harvest. With an average yield of about 27 tonnes per acre, harvesting costs alone touch nearly Rs 1 lakh per acre. ​

While the State Advised Price offers about Rs 3,612 per tonne at a recovery rate of 10.43 per cent, Karuppanan said a substantial share of the income is swallowed by labour expenses. ​

"If labour costs were even moderately bearable, farmers could still manage. But in the current situation, profits are steadily eroding, leaving us with no alternative but to seek intervention from mills and the administration," he said. ​

Echoing similar concerns, S.A. Chinnasamy, State president of Tamilaga Vivasayigal Sangam, said labour charges are rising sharply as the crushing season nears its end. ​

"In my own field, I spent about Rs 1,400 per tonne this season. As the grinding season slows, there is a real risk of labour costs shooting up to Rs 2,000 per tonne," he said. ​

Chinnasamy pointed out that last year, labour charges climbed to nearly Rs 1,800 per tonne towards the end of the season, making cultivation highly unfavourable for farmers. ​

Responding to the farmers' grievances, R. Priya, Managing Director of Subaramaniya Siva Cooperative Sugar Mill, said the mill had earlier attempted to organise a common labour force to help keep costs under control. ​

"However, in most cases, farmers prefer to engage labourers on their own. Since these are individual decisions, the mill has limited scope to intervene," she explained. ​

With labour expenses continuing to spiral, farmers fear that without coordinated action from mills and the government, sugarcane cultivation may soon become unsustainable for small and marginal growers. ​

- IANS

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Reader Comments

P
Priya S
Heartbreaking to read. Farmers work so hard, take all the risk with loans, and then get squeezed from all sides. The sugar mills make profits, but the farmer is left with nothing. Where is the justice? We need a permanent solution, not just temporary fixes. 🙏
R
Rahul R
While I sympathize with the farmers, we also have to see the labourer's side. Their costs of living have gone up too. Maybe the answer is mechanization? Introduce subsidized harvesters. It's a tough situation for everyone involved.
S
Suresh O
The cooperative mill's response is weak. "Farmers prefer their own labour" – of course they do, they want reliable workers! But the mill should take the lead in creating a pooled, regulated labour system with fixed rates. That's what cooperation means. Otherwise, what's the point of a cooperative?
A
Anjali F
This is why so many young people don't want to go into farming. My father is a farmer in Punjab, different crop, same story. The entire economics are broken. The State Advised Price needs a serious revision to reflect real costs. Jai Kisan, but how long can they suffer?
D
David E
Reading this from an economic perspective, it's a classic market failure. The price signal isn't reaching the primary producer. The government intervention requested is necessary to prevent the collapse of an essential sector. A coordinated policy from Chennai is urgently needed.

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