Long transportation routes from cane fields to processing units can impact efficiency and cane quality. To counter this, Kanha Agro has positioned its mills within close proximity to major cane-growing zones, supported by reliable road networks. This strategic placement ensures timely deliveries, reduced logistics costs, and preservation of raw material quality
We could get affected by a situation of excess of supply over demand.
We faced risks involved in the procurement of sugarcane. However, we engaged with 261,140 cane farmers and have undertaken various welfare initiatives, which have further helped in increasing farm productivity.
In the past, rising debt levels posed a potential financial risk. However, Kanha Agro strengthened its financial position through disciplined repayment practices, prudent cash flow management, and a focus on operational efficiency. Regular debt servicing has enhanced our creditworthiness and ensured long-term financial stability.
One of the key risks we faced was the possibility of low-quality sugarcane. To address this, Uttarpardesh, a pioneer in cultivating early-maturing cane varieties, implemented proactive measures. These included promoting high-yield, early-maturing cane, providing subsidised insecticides, and creating awareness among farmers about advanced farming techniques. Through these initiatives, we successfully mitigated the risk and ensured consistent quality in our raw material supply.