Improving Workers’ Lives Worldwide TASK AND RISK MAPPING OF SUGARCANE PRODUCTION IN INDIA Prepared by Fair Labor Association September 2012 Task and Risk Mapping of sugaRcane pRoducTion in india TABLE OF CONTENTS I. EXECUTIVE SUMMARY ...............................................................................................................................................2 II. INTRODUCTION ............................................................................................................................................................3 III. BACKGROUND ..............................................................................................................................................................4 3.1 Agriculture in India .........................................................................................................................................................4 3.2 Sugarcane Production ....................................................................................................................................................5 3.3 Sugarcane Derivatives ...................................................................................................................................................6 IV. STUDY METHODOLOGY ...............................................................................................................................................6 4.1 Assessment Team ............................................................................................................................................................7 4.2 Assessment Stages .........................................................................................................................................................7 4.3 Areas Covered and Information Gathering ...............................................................................................................9 V. FINDINGS ........................................................................................................................................................................ 10 5.1 Sugarcane Cultivation In India ...................................................................................................................................10 5.2 Government Regulations for the Sugarcane Industry .......................................................................................... 13 5.3 Sugarcane Farms in India ............................................................................................................................................ 13 5.4 Labor Profile and Recruitment ................................................................................................................................... 14 5.5 Indian Laws and Legislation for the Agriculture Sector ...................................................................................... 14 5.6 Sugarcane Production and Supply Process ............................................................................................................ 15 5.6.1 Sowing ..............................................................................................................................................................................15 5.6.2 Irrigation ...................................................................................................................................................................... 16 5.6.3 Fertilizer and Pesticide Application .................................................................................................................. 16 5.6.4 Harvesting, Bundling, Loading and Transportation to Sugarcane Centers ....................................... 16 5.6.5 Unloading Sugarcane at Sugar Mill ...................................................................................................................17 5.7 Task and Risk Mapping of Sugarcane Production in North India ......................................................................... 17 5.8 Task and Risk Mapping of Sugarcane Production in South India ....................................................................... 21 5.9 Regional Observations ................................................................................................................................................ 24 5.9.1 Uttarakhand ................................................................................................................................................................... 24 5.9.2 Uttar Pradesh ................................................................................................................................................................25 5.9.3 Gujarat ............................................................................................................................................................................. 28 5.9.4 Maharashtra ................................................................................................................................................................... 31 5.9.5 Karnataka ....................................................................................................................................................................... 36 VI. RISK ASSESSMENT BASED ON FLA CODE OF CONDUCT ........................................................................... 39 VII. CONCLUSION ............................................................................................................................................................. 42 ANNEX I: Labor Laws and Regulations in India: Agriculture Sector .................................................................... 44 ANNEX II: Stakeholders Interviewed for the Study .................................................................................................. 46 ANNEX III: Acknowledgements ...................................................................................................................................... 51 TABLES AND FIGURES Table 1: Agriculture in India vs. Rest of the World, Largest Crops By Economic Value ........................................4 Figure 1: Worldwide Sugarcane Production – 2010.........................................................................................................5 Table 2: Assessment Stages .................................................................................................................................................8 Figure 2: Field Study Areas and Sugar Producing Regions in India ............................................................................9 Table 3: Sugarcane and Sugar Production in India 2010 – 2011 ................................................................................10 Table 4: Highlights of the Sugarcane Industry in India ................................................................................................. 11 Figure 3: Stakeholder Map of Sugarcane Supply Chain in India ................................................................................. 12 Figure 4: Crop Calendar of Sugarcane in India ............................................................................................................... 15 www.fairlabor.org 1 Task and Risk Mapping of sugaRcane pRoducTion in india I. EXECUTIVE SUMMARY each season. Some of the states set out their Statutory Advisory Price (SAP), which Given the Fair Labor Association’s expertise is above the FRP. As per the Supreme Court in task and risk mapping in the agriculture ruling1, it is mandatory for mills to procure sector and the interests of many FLA sugarcane at these prices. There are currently stakeholders, FLA conducted this study 566 sugar mills operating in India, and most to: (1) map the upstream sugarcane supply mills are located in the vicinity of sugarcane chain from the sugar processing units (sugar production areas to reduce transportation mills) to sugarcane farms; (2) map the costs and to retain quality. The “command various activities and tasks involved in the area” of each sugar mill is also defined production of sugarcane; (3) conduct a risk by the government and consists of many assessment of labor issues with respect to thousands of farms – including very small the various activities and production process farms – located in a 25-50 kilometer radius. It of sugarcane; and (4) map the stakeholders is mandatory for every factory to supply 10% involved in the sugarcane supply chain. of its sugar production to the government For the purpose of this mapping, a fact- at the Levy Price established by the Central finding approach was taken involving visits Government. The remaining production is to five sugarcane-producing states in India sold in the open market against the release of – Uttarakhand, Uttar Pradesh, Gujarat, quota by the government. Maharashtra and Karnataka. A total of 91 Sugarcane production in India supports interviews were conducted during the study, 50 million farmers and their families. The including management of 10 sugar mills (34 principal sugarcane growing areas are North factory management sta!; sta! at seven India, especially the state of Uttar Pradesh, civil society organizations; 13 government and South India, particularly the states of o"cials; 11 contractors; 18 farmers; and eight Maharashtra, Andhra Pradesh, Karnataka, workers. Twenty-one farms were visited Tamil Nadu and Gujarat. Sugarcane growing during the course of the study. The questions practices in North and South of India varies. were mostly open-ended,