UP set to surpass Maharashtra as largest sugar producer

Overall, the country's cane sowing in 2016-17 is expected to be 4.41 mn ha, up 7.6% from the current year

The area covered under sugarcane so far for the 2016-17 crushing season is almost 7.6 per cent more than this year with Uttar Pradesh leading the way which could surpass Maharashtra as country's largest sugar producer.

In UP, sowing for the 2016-17 crushing season so far is estimated at 2.18 million hectares, the highest in five years. That in Maharashtra is estimated at 0.76 mn ha, the lowest since 2011-12.

The total sugarcane sown around 5 million ha, 4.41 million ha is complete till June 1. This is 7.6 per cent more area covered than last year.

This also raises question over the estimates of an almost 2 million tonnes drop in production in 2016-17. Production in 2015-16 was a little over 25 mt.

Also, UP is making larger use of Co-0238, a higher-yielding variety. In the ongoing season (2015-16), this was planted on 0.4 mn ha in UP, about 55 per cent more than in 2014-15.

The yield from this is around 80 tonnes a ha; it is 65-70 tonnes for other varieties. Sugar recovery is also better from the new variety.

The expectation of a drop in 2016-17 has pushed up retail prices since April by Rs 4-7 a kg. The Centre, in a series of measures to boost supply, first withdrew an incentive it gave to sugar manufacturers to export and followed with a stock holding limit to prevent hoarding.

It had fixed a limit of 1,000 tonnes for traders in Kolkata and neighbouring areas and 500 tonnes for traders in all other parts.  It also plans a 25 per cent export duty and is contemplating lowering the import duty (now 40 per cent), to boost supply.