Slow start to cane crushing season

Maharashtra's sugar output at 6.2 mt for 2016-17, as compared to 8.4 mt last year, estimates Isma

There has been a slow start to sugar season 2016-17 — it formally began on October 1.

Data from the Indian Sugar Mills Association (Isma) showed a 44 per cent decline in sugar output at 104,000 tonnes between October 16 and 31 as compared to 187,000 tonnes in the corresponding period last year. As against 65 mills that started operation between October 16 and 31 last year, only 28 commenced this year.

Abhinash Verma, director-general, Isma said,“This crushing season is going to be short for mills in Maharashtra and Karnataka, due to lower availability of sugarcane.” Both states were hit by water shortage in many parts and farmers have cut sowing of cane, shifting to other crops. Isma estimates Maharashtra’s sugar output at 6.2 million tonnes for 2016-17, as compared to 8.4 mt last year. In Karnataka, 19 mills had started crushing operations in October as against 12 last year but as on end-October, sugar production was reported at 69,000 tonnes, nearly 15 per cent less than last year at the same time. In Karnataka, overall sugar output is estimated to be 22 per cent lower at 3.19 mt this year.

Three mills in Uttar Pradesh started crushing from the second fortnight, against one mill last year, when there were problems of cane payment arrears to farmers. With a carryover stock of 7.7 mt and estimated production of 23.4 mt, sugar availability in 2016-17 is estimated at 31.1 mt, against estimated consumption of 25.5 mt Thus, the closing stock at the end of the season is expected at 5.6 mt, Isma said.