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India eyes record sugar output in 2018-19

Initial forecast are however against such views

Sanjeeb Mukherjee  |  New Delhi 


Though these are early days, yet there is a section within the Indian industry that has already started talking of a record production of almost 29-30 million tonnes in the 2018-19 crop marketing year that will start from October next year.

The estimate is based on the standing crop estimates in some states and also planting intention by farmers.

This, if true, would not only be one of the highest ever production levels seen in India, but it will also be almost 4-5 million tonnes more than the production levels of 2017-18, which is projected at 25 million tonnes.

A section of the industry feels that a good retreating monsoon this year, coupled with stable prices for farmers would encourage them to plant more crops.

"The retreating monsoon this year has been good in parts of after two consecutive years of low rains, while in the high-yielding C0-238 variety is expected to cover almost 80 per cent of the planted area, which should itself lead to a significant rise in production," said Prakash Naiknavare, managing director of National Federation of Cooperative Factories Ltd.

He said that the overall crushing capacity of the sector is also expected to go significantly as the 80 closed cooperative factories will become operational in the coming months.

Is India staring at record sugar production in 2018-19?

Of this, around 40 factories are in Maharashtra, while another 30 are located in

"Though we haven't yet assessed the crop estimate for 2018-19, yet whatever information we have from the market, it does point towards a rise in production in 2018-19," said R P Bhagria, chief executive officer of All Trade Association.

In UP, the high-yielding Co-238 variety not only gives a higher per hectare yield but its average recovery is also more than existing varieties. Moreover, the variety is expected to occupy almost 80 per cent of the total planted area, as a result of which the overall production is projected to increase.

surpassed to become India's foremost producing state and it is likely to maintain this lead for the next two years.

All thanks to the new variety.

The price realised from for farmers in 2017-18 is also expected to be better than other crops as the government has raised the State Advised Price (SAP) of by Rs 10 per quintal for both common variety and early maturing varieties at Rs 315 per quintal and Rs 325 per quintal respectivey.

The Central government too has raised the Fair and Remunerative Price (FRP) of for 2017-18 season by Rs 25 per quintal to Rs 255 per quintal, while for the 2018-19 season, it is expected to be increased by another Rs 20 a quintal.

The expected bumper harvest has once again reignited calls for devising plans to ensure the absorption of surplus production. If estimates are correct, then might have a surplus of almost 4-5 million tonnes of by the end of 2018-19 season.

First Published: Thu, November 09 2017. 02:23 IST