Karnataka's sugar output may decline 7% this year

Karnataka, the third largest sugar producer in India, is set to witness a decline in sugar production by at least seven per cent in FY14 sugar season (October 2013 to September 2014), the second year in a row. Going by the current indications, the sugar output is estimated to touch 3.20 million tonnes this year against 3.43 million tonnes in the 2012-13 season.

The drop is mainly due to continuous drought for the past two years across major growing areas in the state and the dry summer this year.

The harvestable cane area has declined by 10 per cent and, as a result, the mills in the state are likely to crush less than 30 million tonnes against 33 million tonnes last year. The average sugar recovery is also estimated to decline below 10 per cent from 10.39 per cent last year.

In FY12, Karnataka produced 3.68 million tonnes of sugar by crushing 33.58 million tonnes of sugarcane with an average recovery of 10.97 per cent.

Karnataka accounts for an average 13 per cent of the national sugar output annually. However, for the current season, the output is likely to decline all over the country due to drought in many parts as well as delayed crushing in many states, as farmers are demanding higher cane prices.

Sugarcane production in the state is also likely to decline by about 10 per cent this year due to less harvestable area.

The cane availability is estimated at around 30 million tonnes, compared to 33 million tonnes last year.

Sugar industry experts have attributed the decline in sugarcane to drought and shift in cane cultivation by the farmers due to increased cost of cultivation and lower cane prices.

Although the monsoons were conducive this year, the result can be see only in the next crushing season. For the current crushing season, the cane availability is much less, experts said.

In Karnataka, sugarcane is largely grown in the districts of Belgaum, Bagalkot, Bidar, Mandya, Gulbarga and Bijapur. For 2013-14, the cane planting has been done in 492 hectares as on November 5, 2013.

In the previous year (2012-13), the planting was done in about 500,000 hectares across the state. However, due to unsatisfactory rains, the harvestable cane area is likely to be around 400,000 hectares, which is about seven per cent lower than last year's 430,000 hectares, according to the state agriculture department.

Of late, Mandya district, which is considered the sugar bowl of Karnataka, has lost its status to Belgaum, which has more than 20 sugar mills. There are 59 working mills in Karnataka - 37 in the private sector, two in the public sector and the remaining in the cooperative sector.