Cooperatives body raises India’s sugar output estimate, seeks relaxation on ethanol curbs bl-premium-article-image

BL New Delhi Bureau Updated - January 02, 2024 at 08:17 PM.

Production deficit narrowed to 7.6 per cent as on December 31, against over 9.2 per cent until December 15

Cooperative sugar industry body National Federation of Cooperative Sugar Factories (NFCSF) has raised the current season’s sugar production estimate to 30.5 million tonnes (mt) from 29.15 mt it estimated earlier after the current season’s production deficit narrowed to less than 8 per cent as of December 31. Until December 15, the deficit was over 9 per cent. NFCSF expects further improvement in recovery.

Releasing the update on sugar production, Prakash Naiknavare, Managing Director of NFCSF, said: “As the estimated 29 mt of sugar production at the beginning of the season is expected to increase by about 1.5 mt, the current restrictions on ethanol production may be relaxed to some extent.” He said NFCSF along with Indian Sugar & Bio-energy Manufacturers Association (ISMA) will jointly take up the issue with the Government.

Yield may rise

According to NFCSF data, 511 factories have crushed 122.26 mt of sugarcane and produced 11.21 mt of sugar with the average sugar recovery at 9.17 per cent between October and December in the 2023-24 season. In the corresponding period a year ago, 514 mills had crushed 132.06 mt of sugarcane and produced 12.14 mt of sugar with average sugar recovery at 9.19 per cent.

As the winter increases, sugar yield is expected to increase further, said Jaiprakash Dandegaonkar, president of NFCSF. Since the Union Government has limited the production of ethanol from sugarcane juice, the total availability of sugar in the country for local consumption is expected to be higher than initial assessment, said Dandegaonkar.

In Uttar Pradesh, 120 factories have crushed 35.91 mt of sugarcane and produced 3.47 mt of sugar with 9.65 per cent average recovery during October -December whereas 117 factories had crushed 34.22 mt of sugarcane and produced 3.08 mt of sugar with 9 per cent recovery.

More than expected

On the other hand, in Maharashtra as many as 195 sugar mills have crushed 42.68 mt of sugarcane and produced 3.82 mt of sugar with 8.95 per cent recovery against 201 sugar factories had crushed 50.43 mt of sugarcane to produce 4.74 mt of sugar with 9.40 per cent recovery.

Karnataka, the third largest producer after UP and Maharashtra, has reported 73 factories in operation until December 31 and have crushed 26.37 mt of cane, producing 2.4 mt of sugar, with 9.10 per cent recovery. A year ago, the same number of factories in Karnataka had crushed 28.71 mt of cane, producing 2.67 mt of sugar, with 9.30 per cent recovery.

According to NFCSF, Uttar Pradesh is expected to produce 11.5 mt of sugar (against 11 mt estimated earlier), Maharashtra 9 mt (8.5 mt), Karnataka 4.2 mt (3.8 mt), Tamil Nadu 1.2 mt (1.2 mt) and Gujarat 1 mt (1 mt).

Published on January 2, 2024 14:47

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