Sugar output in the first three months of the current 2021-22 season was up 4.34 per cent at 115.55 lakh tonnes (lt) against 110.74 lt during the same period last season.

According to the Indian Sugar Mills Association (ISMA), about 492 sugar factories were in operation as of December-end against 481 in the same period last season.

In Maharashtra, the output was up by about 15 per cent at 45.77 lt till end-December compared with 39.86 lt in the previous year. The number of mills crushing cane was higher by 10 at 189 in the State.

In Uttar Pradesh, the production has been rather sluggish at 30.9 lt (33.66 lt). About 119 mills were in operation in the State as against 120.

In Karnataka, the production was up six per cent at 25.65 lt ( 24.16 lt).

In Gujarat, the output was 4.5 per cent more at 3.5 lt, while the combined production in Andhra Pradesh and Telangana , the production was up 17 per cent at 1.05 lt. Similarly, in Tamil Nadu, the production was up 26 per cent at 92,000 tonnes.

ISMA said it will come with second advance estimates for 2021-22 season by the end of this month.

Total sales in the first two months of 2021-22 season was about 47.50 lakh tonnes, higher than the domestic sales quota of 46.50 lakh tonnes set by the Government.

Ethanol supply

The association also said the Oil Marketing Companies (OMCs) have so far allocated about 366 crore litres of ethanol for supply in ethanol supply year (ESY) 2021-22.

This is against the requirement of 459 crore litres for 10 per cent ethanol blending. Further, OMCs had floated the third expression of interest (EOI) indicating requirement of about 94 crore litres on December 25, for which about offers for 30 crore litres have been received by them.

Currently, OMCs are examining the bids and are expected to make the allocations in a few days’ time, ISMA said. Owing to a fall in global prices of raw sugar, not much export contracts happened in the last one month , beyond the 38-40 lakh tonnes of export contracts which have already been signed.

Since almost 9 months are left for the current season, mills are still waiting for the opportune time to enter into further export contracts, it added.