Sugar mills in Tamil Nadu are seeing significant increases in sugarcane arrivals and sugar recovery and are well set to achieve the output forecast early in the season.
According to industry sources, sugarcane arrivals in the private sector mills have grown by more than 45 per cent as of February as compared with the same period last year. Sugar recovery in the private sector mills has also increased by about 50 basis points.
These augur well for the sugar mills, particularly in the context of the higher sugar recovery in tandem with the sugarcane arrivals.
However, the growth is restricted to the 26 private sector sugar mills and the cooperative sector mills' arrivals and recoveries are stagnant.
According to industry estimates, total sugarcane arrivals for the private and cooperative sector sugar mills in the State up to February during the ongoing 2011-12 season is estimated at about 98 lakh tonnes against 75 lakh tonnes in the same period last year. Sugar production is at 8.6 lakh tonnes (6.75 lakh tonnes). Sugar recovery is at 9.41 per cent (9.05 per cent).
Based on the status of the season, the industry is confident that it would be able to achieve the forecasted sugar production of over 22.5 lakh tonnes in the current season, a 20 per cent increase over the last season.
With the sugarcane prices in the State pegged at Rs 2,100 a tonne linked to 9.5 per cent sugar mills are not too badly off as compared with the prevailing sugar prices which ranges around Rs 2,650-2,700 a quintal. With all India sugar production pegged at 260 lakh tonnes there is still some cause for concern on sugar prices dropping, said a sugar mill representative.
The outlook for the coming season in 2012-13, based on the planting progress is buoyant with the growth in sugarcane arrivals expected to sustain, they say.