UP sugar output may grow 15%

Uttar Pradesh sugar production in the current crushing season is likely to grow over 15 per cent compared to last year and touch a figure of almost 6 million tonnes.

Against sugar production of 5.18 million tonnes in 2009-10, the output is touted to touch 5.98 million tonnes in 2010-11, a growth of 15.5 per cent.

However, the target would be lesser than earlier projections of 6.36 million tonnes and later 6.2 million tonnes, due to lower than expected sugar recovery this season and loss of sugarcane crop in floods.

The sugar recovery percentage stands at 8.93 per cent against 8.83 per cent last year.

Meanwhile, cane farmers had been collectively paid nearly Rs 6,150 crore by millers, who have been proactive in meeting their payment commitments to check diversion of sugarcane to crusher/jaggery units and to mills in other states.

“There is adequate availability of sugarcane and crushing would continue till April,” a sugarcane department official told Business Standard. The mills are paying the State Advised Price (SAP) of Rs 205-210/quintal to farmers.

An industry spokesperson confirmed robust cane supply to mills saying the crushing would continue till March-end and some mills in western Uttar Pradesh could also stretch to April.

The crushing in the last season had ended around March 15 due to lower cane availability.

There are about four million cane farmers in the state, which is the highest sugarcane yielding state in India and second largest sugar producer after Maharashtra. The annual sugar consumption in Uttar Pradesh is over five million tonnes.

Till date, all the 125 odd sugar mills had crushed nearly 37.5 million tonnes of sugarcane. During 2010-11, state cane acreage and production have been estimated at over two million hectares and 120 million tonnes, respectively.

The crushing started late, due to dispute over cane price and late rainfall which had resulted in higher moisture content in cane. The crushing gathered steam after Chief Minister Mayawati issued stern warning to millers.