The month-long delay in starting crushing operations over sugarcane pricing controversy is unlikely to have an impact on sugar production, with the industry maintaining its output forecast at 25 million tonnes (mt) for the current season 2013-14.
“It should not be a problem to meet the projected output for the year. We would have lost if there was diversion of cane to jaggery units. Though farmers in Uttar Pradesh had diverted cane, it is not in large quantity,” said Abinash Verma, Director General of the Indian Sugar Mills Association (ISMA). In its early forecast, ISMA had pegged 2013-14 output at 25 mt.
After over a 10-day stand-off, millers in UP on Sunday agreed to start cane crushing and many units have started firing their boilers, a precursor to the commencement of operations. At the same time, almost all mills in Maharashtra are expected to commence operations by this week-end.
The delay in crushing should boost sugar recovery, thereby aiding the output, said M.G. Joshi, Managing Director of National Federation of Co-operative Sugar Factories Ltd (NFCSF). The co-operative sugar body expects the output to be between 24.5 mt and 25 mt, Joshi said.
ISMA is expected to update its production forecast in January, based on the progress of crushing.
As of end November, sugar production stood at around 8 lakh tonnes against 24 lakh tonnes during the same period a year ago, as only 208 mills had started operations against 400 last year.