K'taka sugar output set to rise 26% this year

Sugar production in Karnataka is likely to increase 26.4 per cent to 2.1 million tonnes (mt) in the present sugar season (October 2009 to September 2010) compared with 1.66 million tonnes produced during the previous season. Cane crushing for the present year is nearing completion and 10 of the 54 mills have already shut their operations.

Karnataka accounts for about 13 per cent of the country’s sugar production. The rise in production of sugar this year is mainly on account of the delay in commencement of cane crushing and good recovery. The average recovery of sugar has risen 53 basis points, to 10.97 per cent as of March 15, 2010. The recovery in north Karnataka has gone up to 11.29 per cent, while it is 9.86 per cent in the rest of the state. Heavy rains during September 2009 in many parts of the growing areas in north Karnataka have resulted in better cane growth, industry sources said.

According to the South Indian Sugar Mills Association (Sisma), the mills in the state are likely to crush around 20 mt of cane this year, which is about 24 per cent more than last year with an average sugar recovery of 10.87 per cent. The mills are likely to continue crushing the till end of April 2010.

Earlier this year, Sisma had estimated the availability of cane for sugar mills at 18 mt with sugar production at 1.9 mt with a recovery of 10.7 per cent during the season 2009-10.

For the present season, mills in north Karnataka have offered Rs 2,400 per tonne of cane to farmers, which is almost double the fair and remunerative price (FRP) announced by the Centre. Mills in the rest of state have offered Rs 1,950 per tonne, which is about 51 per cent more than the FRP.

The sugar industry in India has faced the worst drought in the years 2003 to 2005. Further, two years have gone for improving the plantation and growing the cane. In 2007-08, abundant cane was available in Karnataka and, therefore, mills crushed 27 mt and produced 2.9 mt of sugar. During the season 2008-09, sugar production was 1.66 mt in the state, which was about 42 per cent less than the previous year.

For the present season, the industry has shown an improvement and cane plantation has increased across the state. According to present indications, the cane availability for the next sugar season, starting October 2010, would rise 15 per cent to 23 mt.