Sugar production up 27% in Q1 of crushing season

Delay in cane price fixation and arrears payable by mills to farmers led to factories delaying crushing this season

Sugar output in India rose 27 per cent in the ongoing season’s first quarter (October-December) over the same period a year before.

Data compiled by the Indian Sugar Mills Association (Isma) showed output at 7.46 million tonnes, compared with 5.86 mt in October-December 2013. This was despite a late start to cane crushing. It usually begins in October (the sugar year runs from October of one year to September of the next) but there was a delay in cane price fixation and on dealing with the arrears to farmers, so factories delayed commencement.

“Almost all mills across the country are operating at 100 per cent capacity. This will ensure the crushing season comes to an end earlier this year,” said an industry expert. By end-December, 481 mills were in operation, compared to 485 a year before at the same time.

In Maharashtra, 171 working mills had produced 3.28 mt of sugar till December 31, as compared to 155 operational mills and 1.04 mt a year before. In Uttar Pradesh, 117 mills reported a cumulative output of 1.72 mt, compared to 119 mills and 1.12 mt earlier. Sugar recovery in the state was 9.25 per cent this year than the 8.75 per cent last year.

Karnataka and Tamil Nadu have also reported higher output.

“Higher production does not mean the trend will continue through the season. We continue with our output estimate of 25-25.5 mt during crushing season 2014-15, from last year’s 24.4 mt,” said Abinash Verma, director-general, Isma.