Karnataka sugar production up 45% in Oct-April

Karnataka’s sugar production has risen 45 per cent to 2.32 million tonnes during the first seven months of the current sugar season (October 2009-September 2010) as compared to the year-ago period. Of the 55 working mills in the state, 45 have already closed crushing. The remaining are likely to crush for another week or so.

Karnataka, the third-largest producer of sugar in the country, accounts for around 13 per cent of India’s total production. The increase in production in the state is expected to lower sugar prices across the country. Analysts indicate that prices may come down by around 30 per cent in the near future.

As on April 22, 2010, sugar mills in the state saw 40 per cent rise in cane crushing at 21.53 million tonnes, as compared to the previous sugar season. Mills have achieved an average recovery of 10.8 per cent as against 10.4 per cent in the previous year.

The rise in production is mainly attributed to good availability of cane in the state. Karnataka’s cane production increased 10 per cent to 25.57 million tonnes, as against 23.24 million tonnes in the previous sugar season. The area under cane was marginally higher at 456,000 hectares compared to 452,000 hectares in the previous year.

During the 2008-09 sugar season, the mills in Karnataka produced 1.66 million tonnes sugar by crushing 16 million tonnes cane at an average recovery of 10.3 per cent.

This year, the harvestable cane area was marginally higher at 283,000 hectares, as compared to 278,000 hectares. The remaining 173,000 hectares will be available for harvest from October onwards, according to estimates by the state agriculture department.

The farmers increased area under cane due to higher prices offered by mills, said sugar industry sources. Mills in north Karnataka paid Rs 2,350 a tonne for cane, while mills in south Karnataka paid Rs 1,950 a tonne, 81 per cent and 50 per cent higher, respectively, over the fair and remunerative price (FRP) fixed by the Centre for 2009-10.

With another 10 days remaining for the crushing season to end, the industry expects that final crushing may touch 22.5-23 million tonnes and sugar production for the year will reach 2.45 million tonnes. Sugar mills in southern parts of the state will recommence crushing in August, while northern mills will do so in October.

Moreover, four mills, Bannari Amman Sugars, Godavari Biorefineries, Chamundeshwari Sugars and Shree Renuka Sugars, have converted 135,000 tonnes of raw sugar.

Going by the current indications, the sugar industry expects that production during the next sugar season (starting October 2010) will be around 2.8 million tonnes and cane availability for crushing will be in excess of 26 million tonnes.