Sugar output in India, the world’s second largest producer, has touched 273.74 lakh tonnes (lt) as of April 30, around 14.3 per cent higher than at the same time last season (October-September) when mills had produced 239.43 lt.
According to the latest estimates provided by the Indian Sugar Mills Association (ISMA) on Friday, the industry appears to be on course to touch 280 lt, a near-decadal high since 283.6 lt was recorded in the 2006-07 season.
Among the reasons cited for higher output is the rise in yield per hectare in Maharashtra and Uttar Pradesh, the two biggest sugar producing States. “In Uttar Pradesh, average recovery has increased from 9.29 per cent in 2013-14 to 9.54 per cent,” said an ISMA release.
Closing stock at the season’s end is expected to be 95 lt which is 35 lt more than the requirement for domestic consumption and is likely to worsen the supply glut and keep prices depressed, the association stated.
A Vellayan, President, ISMA, commended the decisions taken by the Centre to help the cash-strapped industry such as increasing the import duty to 40 per cent and removal of excise duty on ethanol.
He added that the Government should purchase at least 30 lt which “will give instant funds of about Rs. 8,000 crore to the industry” in order to help clear arrears of Rs.21,000 crore owed to sugarcane farmers.
Record in Maharashtra
Maharashtra’s mills have produced 103.5 lt so far, as against 77.14 lt at the same time last season, with 40 mills still crushing cane as against 14 in 2013-14.
Around 18 mills are still operating in UP where 70.15 lt has been produced till April 30, it was 65.08 lt at the same time last year. Karnataka, the third-largest sugar producing State, produced 47 lt as against 41.19 lt at the corresponding time last season.
Tamil Nadu, another major producer, recorded 9 lt which is 2.02 lt less as compared to last year but have 30 mills operating currently as against 22 last season.
“Tamil Nadu and Karnataka will crush sugarcane in the latter part of the season i.e. between July and September and they will produce approximately 3-3.5 lt. Therefore, sugar production in the current sugar season may be around 278-280 lt,” the ISMA statement said.