Drought likely to cut sugar output by 50% in Maharashtra

Less cane availability due to drought and lack of ratoon crop contribute to the dip

Maharashtra, which contributes a third of the country’s sugar production, is expected to see a 50 per cent drop in its output during crushing season 2016-17 that begins in October.

Preliminary estimates by the Maharashtra State Federation of Cooperative Sugar Factories are for state production of 4.5 million tonnes in 2016-17, against 8.4 mt in 2015-16 and 10.5 mt in 2014-15. The fall is attributed to drought in cane growing districts.

The Federation has projected a decline in cane production to 46 mt in 2016-17, against 74.3 mt in 2015-16. Of the 13.5 million hectares under the kharif crop in the state, sugarcane is grown on 10.25 mn ha. The sharp fall is attributed to severe drought in sugarcane-growing districts, leading to a decline in plantation.

Sanjeev Babar, managing director of the Federation, told Business Standard: “At least 40 cooperative factories from drought-hit districts won’t be in a position to operate, for want of cane.”

In 2015-16, as many as 176 factories, 99 cooperatives and 77 private ones, took part in the crushing season.”

Indian Sugar Mills Association and the National Federation of Cooperative Sugar Factories have estimated India’s sugar production in 2016-17 at 23.5 mt, against 25.2 mt in 2015-16. The projected output will be the lowest since the 18.9 mt for 2009-10.