The negotiations are expected to commence in September and an agreement is likely to be signed in November. The coordination committee will meet at Satara on August 18 to take a formal decision on holding the talks.

The federation discussed the issue at a meeting in Mumbai on Sunday. Workers' representatives Kishor Pawar, Madhukar Katre, Madhukar Bhise, Babanrao Pawar, Suresh Gawali and R R Shinde were invited to discuss the issue informally after the federation meeting.

The decision to hold negotiations was taken on the recommendation of National Federation of Sugar Factories' Organisation president Shivajirao Giridhar Patil. The meeting was attended by state federation president Narendra Borgaonkar and representatives of sugar factories.

The coordination committee and the federation will depute 10 representatives each for the talks. The negotiations will be completed within three months. The period of the old wage agreement had expired on December 31.

If the federation's new wage proposals are acceptable to the coordination committee, the call given for a token strike by sugar factory workers on September 20 will be withdrawn.

The workers will have to continue their agitation to seek a solution to the issue of closed and sick sugar factories and pending arrears of workers. Some issues fall under the jurisdiction of the State Government and some the Central Government.

The co-ordination committee had earlier planned a rally of workers at Baramati to press their demands. The workers were keen that Sharad Pawar, Leader of the Opposition in the Lok Sabha, take a lead in voicing their demands.