Sugar production is up 27.3 per cent in the first three months of the 2014-15 season that began in October to hit 74.61 lakh tonnes (lt) as on December 31, according to data released by the Indian Sugar Mills Association on Monday.

Mills produced 58.63 lt of sugar in the corresponding period of 2013-14 and the nearly 16 lt rise in production has been attributed to mills in Uttar Pradesh (UP) beginning cane crushing operations a week earlier than last season.

“This year’s production is slightly higher than last year mainly because the UP mills started their crushing operations almost a week before compared with last year.

“Sugar recovery till is higher at 9.25 per cent, which was 8.75 per cent last year,” said an ISMA statement. The sugar producers’ body said the number of mills operating on December 31, 2014 was 481, four less than at the same period a year ago.

Maharashtra and UP, the two largest sugar-producing States, recorded a 47 per cent and 55 per cent rise, respectively.

Some 171 mills in Maharashtra produced 32.75 lt, about 10.41 lt more than at the same time last season when 155 mills had started operations. In UP, 117 mills began crushing by December 31, and produced 17.21 lt as compared to 11.19 lt produced by 119 mills in 2013-14.

Karnataka’s output fell marginally to 12 lt from 12.34 lt with 63 mills operating now against 59 last year.

Only 15 mills operated in Tamil Nadu, unlike 35 last season and the State produced 0.65 lt of the sweetener as compared to 1.62 lt previously. All 11 mills in Bihar have begun operations and doubled output to record 1.8 lt so far.

ISMA said that ex-mill prices had been falling across the country with Maharashtra and Karnataka selling the sweetener between ₹2,450-2,500/quintal. Prices in UP are ruling between ₹2,600-2,650/quintal.

Falling prices

“It has become difficult for the mills to even pay FRP (fair & remunerative price) as ex-mill prices are substantially below the cost of production,” the association said.

Related Topics