Sugar production down 11.74% on late crushing

India’s sugar output declined 11.74% in the first four months of this crushing season (October–September) due to late start or cane crushing this year. Data compiled by the apex trade body Indian Sugar Mills Association (ISMA) showed India’s total sugar output at 16.86 million tonnes between October 2013 and February 2014 period compared to 18.84 million tonnes in the corresponding period lastyear.

With the intensified crushing of operational mills, the production gap of 13% a fortnight ago narrowed down to less than 12% now. Currently 460 mills are operational in the country which represents 23 mills higher thanaround the same time last year.“The season started with 10-15 days due to farmers’ agitations in Uttar Pradesh andMaharashtra, the country’s two largest sugar producers, over fixation of caneprices.

In north Karnataka also crushing delayed over 15 days on high caneprices announced by the state government. Therefore, sugar output has beenlower so far this year,” said Abinash Verma, Director General of ISMA. Sugar mills in Maharashtracrushed 51.5 million tonnes of cane to produce 5.71 million tonnes of sugarwith 11.1% of recovery. However, at the same time, last year mills inthe state had crushed 59 million tonnes of cane to produce 6.57 million tonnes of the sweetener with 11.15% of recovery.

(in lakh tons)
Season	Sugarcane Production	Sugarcane crushed	Sugar Production	Closing stock
2008-09	2850	1449.77	145.38	43.64
2009-10	2923	1885.48	189.12	57.93
2010-11	3424	2398.07	243.94	60.05
2011-12	3610	2569.75	263.42	66.01
2012-13	3390	2505.98	251.4	92.77

Till date, 25 mills have closed their operations for the sugar season 2013-14, while last year 36 millshad stopped crushing by February 28. In UttarPradesh, sugar mills have produced 4.28 million tonnes of sugar from 47.5 milliontonnes of cane crush with 8.99% of recovery. Last year during same corresponding period, however, sugar mills in the state had crushed 56 milliontonnes of cane to produce about 5.01 million tonnes of sugar with 8.94%of recovery.

All 119 mills are still under operation against 118 during same period last year. Sugar mills have a total unpaid arrears of around Rs 14,000 crore of which sugar mills in Uttar Pradesh owe Rs 10,000 crore as on February 28, 2014.“Due to commencement of late, the crushing season will endlate by 7-10 days this year,” said Verma.

ALSO READ: Sugar mills to cash in on export incentives