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.
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