Indian sugar output may dip 15% next yr

According to an NCDEX estimate, total production is set to come down to 24 million tonnes in the sugar season (October - September 2008-09) in comparison with an estimated 28 million tonnes and 30 million tonnes during the current and last season, respectively.

The output loss may partly be attributed to a delayed start of crushing because of rains and poor labour turnout. Since, mature cane loses its sucrose content in the case of delayed harvesting hitting recoveries. This year, matured crop could not be harvested, especially in Uttar Pradesh, India's second-largest producer, because of mud presence in the field.

Next year too, extended rains coupled with an expected delay in harvesting and a substantial loss in acreage area may reduce the output, said an expert.

Enthused with higher realisation from cereals, farmers may sow more of wheat, rice and oilseeds. While sugar prices remained rangebound around Rs 15-16 per kg, prices of all other major agri commodities jumped (upto 65 per cent) last year.

Demand for sugar picks up in summer from ice-cream and cold beverages makers. However, the summer demand has failed to pick up this season, according to market sources. With monsoon almost at doorstep, the demand is expected to drop further. All this has contributed to the declining trend in prices.

Meanwhile, world production of sugar is expected to move up slightly to 168.4 million tonnes for 2007-08 against 166 million tonnes last year. World consumption, however, is also set to perk up by 2.78 per cent to 159.1 million tonnes, thus production is expected to be 9.3 million tonnes higher than consumption globally.

Maharashtra sugar output at 9.03 mn tn
According to a NewsWire18 report, Maharashtra's sugar output for the period Oct 1-May 30 has topped all earlier projections to touch 9.03 million tonnes, marginally above 9.02 million tonnes registered last year, an official of Maharashtra State Cooperative Sugar Factories Federation said.

Cane crushing during the period, however, was down 3 per cent at 76.55 million tonnes, he said. Various industry and government bodies had estimated the state's sugar output at 8.2 million tonnes at the beginning of the season, while the latest estimate projected the production to be around 8.8 million tonnes.

In 2006-07 (Oct-Sep), Maharashtra produced record 9.1 million tonnes sugar and the extension of the current crushing season to June may lead to another record crop.

Maharashtra has extended its crushing season to tackle the surplus cane situation in some parts of the state. For the third consecutive month, the output showed a year-on-year rise because of improved recovery.

Although, there was a small drop in the average sugar recovery rate on a monthly basis, but on year-on-year basis, it improved significantly to 11.80 per cent from 11.44 per cent a year ago. The highest average recovery rate of 12.63 per cent was registered at factories in Kolhapur and Sangli.