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Key Points

Sugarcane is rapidly losing its foothold in Tamil Nadu's Namakkal district. Farmers are abandoning the crop due to skyrocketing production costs and severely delayed payments from mills. The local sugar mill is operating with outdated machinery, resulting in poor efficiency and low sugar recovery rates. This has pushed growers toward more reliable and profitable alternatives like bananas, threatening the region's sugarcane tradition.

Key Points: Namakkal Sugarcane Decline as Farmers Switch to Bananas

  • Sugarcane area in Namakkal fell to 12,000 acres, only a third of its historical peak
  • Salem Sugar Mill's output dropped to 25% capacity due to lack of farmers
  • Production costs soared with rising labor, fertilizer, and power expenses
  • Farmers face payment delays up to six months making the crop unsustainable
2 min read

Sugarcane loses ground in TN's Namakkal as farmers take to high-return crops

Tamil Nadu's Namakkal sees sugarcane cultivation plummet as high costs and delayed payments push farmers toward profitable banana crops and alternatives.

"The area under sugarcane has shrunk to about 12,000 acres -- just a third of what it once was - Article"

Chennai, Sep 25

Sugarcane cultivation in Tamil Nadu's Namakkal district, once a mainstay for thousands of farmers, is steadily declining as growers shift to more profitable alternatives such as bananas and other short-duration crops.

The crop, historically grown across areas like Jedarpalayam, Paramathi Velur, Mohanur and Senthamangalam, has lost its economic appeal due to mounting production costs, uncertain returns and delayed payments from mills.

The area under sugarcane has shrunk to about 12,000 acres -- just a third of what it once was -- with only a quarter of farmers still cultivating it. At the Salem Cooperative Sugar Mill, which had crushed nearly four lakh tonnes annually until 2017, output in the 2024-25 season dropped to just 1-1.15 lakh tonnes, barely 25 per cent of capacity.

Farmers say the cost of production has soared with rising labour charges, fertiliser prices, irrigation needs and power expenses. Procurement prices remain between Rs 3,200 and Rs 3,350 per tonne, while occasional private offers of Rs 4,500 per tonne are rare and unreliable. Last year, some farmers faced payment delays of up to six months, disrupting their cash flow and making the crop less sustainable.

Although the state government announced an incentive of Rs 349 per tonne and promised to raise total returns closer to Rs 4,000 per tonne, delays in implementation have left cultivators struggling.

The Salem Cooperative Sugar Mill, dependent on machinery installed in 1964, continues to operate without major upgrades, resulting in poor crushing efficiency. The recovery rate -- sugar extracted from cane -- stands at just 7.7 per cent, meaning 77 kilograms of sugar per tonne. In contrast, states like Maharashtra achieve nearly 13 per cent because of better crop varieties and climatic advantages.

Lower recovery rates not only reduce farmer earnings but also affect the mill’s financial viability.

Experts note that sugarcane’s long cultivation cycle makes it less attractive when compared to crops that provide two or three harvests a year. Pest attacks, seasonal fluctuations and crop diseases have added to the risks.

As returns diminish and costs rise, farmers are moving to bananas and other crops with quicker payback and stable markets. Unless pricing reforms, timely payments and modernisation of mills are introduced urgently, sugarcane could continue to disappear from Namakkal’s agricultural landscape, ending a long-standing tradition and impacting the region’s rural economy.

- IANS

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Reader Comments

P
Priya S
Very sad to see traditional crops disappearing. But farmers have to think about their families' survival. 6-month payment delays are unacceptable! Government should ensure timely payments if they want to save sugarcane farming.
M
Michael C
Interesting economic shift. The 7.7% recovery rate compared to Maharashtra's 13% shows how technology and better practices can make a huge difference. Farmers are making rational choices for their livelihoods.
S
Shreya B
My family has been in sugarcane farming for generations in Paramathi Velur. It breaks our heart to switch, but what option do we have? Production costs have skyrocketed while prices remain stagnant. Banana cultivation gives us 3 harvests a year! 🌾
A
Arun Y
The government needs to act fast. Sugar mills running on 1964 machinery? This is shameful. We need immediate modernization and better crop varieties. Otherwise, Tamil Nadu will lose its sugar production completely.
K
Kavya N
While I understand farmers' need to switch to profitable crops, we must also consider the environmental impact. Sugarcane requires less water than bananas in the long run. There should be a balanced approach with government support.
V
Vikram M
This is what happens when policies don't keep up with ground realities. Farmers are the backbone of

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