Sugar mills despite low output in FY09

The Agriculture Ministry has estimated the country’s sugarcane output at 289.23 million tonnes (MT) for FY09, nearly 17 per cent less compared with previous year.

According to the latest estimates, the sugarcane production is pegged at 289.23 MT. The output is marginally less than the second advance estimate of 290.45 MT, released in February 2009. In FY08 (October-September), production was 348.19 MT. The estimates have greater significance this year as the industry claims lower output as one of the factors for the high sugar prices.

According to the Indian Sugar Mills Association (ISMA), the production in FY09 is expected to decline by 43 per cent to 14.7 MT from 26.4 MT in the previous year. Even Food Ministry officials have estimated the sugar production to be about 15 MT. Industry officials also said there is a decline in recovery rate (the volume of sugar extracted out of sugarcane). Out of every quintal of sugarcane, about 9 kg of sugar is produced, although it varies from state to state.

Sugar output in Maharashtra, the country’s largest producer, declined 50 per cent this year after farmers reduced the area under cultivation and dry weather lowered yields. The production was 4.6 million tonnes (MT) between October 1 and May 11, compared with 9.1 MT a year ago, said Prakash Naiknavare, managing director of the Maharashtra State Cooperative Sugar Factories Federation.