The country’s sugar production has touched a record 29.98 million tonnes (mt) till April 15 in the current season on higher sugarcane output, resulting in arrears to farmers burgeoning to ₹20,000 crore, according ISMA.
The industry body demanded the government provide production-linked incentive to cane farmers as it did in 2015-16 marketing year (October to September). Sugar output of India, the world’s second largest producer, was 20.3 mt in 2016-17. against an annual domestic demand estimated at 25 mt.
Sugar production in the current season has crossed the expected levels at 299.80 lakh tonnes, the Indian Sugar Mills Association (ISMA) said in a statement.
As many as 227 sugar mills were still crushing sugarcane. Sugar production in Maharashtra has almost reached its past record and mills produced 10.49 mt up to April 15, 2018. Mills in Uttar Pradesh produced a record 10.48 mt of sugar.
Crushing operations are almost over in Karnataka and only one sugar mill was operational as on April 15, 2018. The State hasso far produced 3.63 mt of sugar. ISMA said sugar prices have been under severe pressure in the last 4-5 months and have fallen by ₹9/kg across the country. The current ex-mill sugar prices are around ₹8 lower than cost of production and sugar mills are incurring substantial losses.
“Inability to pay cane price because of highly depressed sugar prices has translated into huge cane price arrears. As on March 15, 2018, the cane arrears reported to the government was over ₹18,000 crore across the country,” ISMA said, adding that arrears could have crossed ₹20,000 crore now.
In 2015-16 sugar season, “the Government helped the sugar mills and sugarcane farmers with an incentive of ₹4.50/ quintal of sugarcane as part of FRP, there is an immediate need once again in the current year when the distress is even greater,” ISMA said.