Sugar output dips marginally

Also, sugar dues accruing to farmers touched Rs 12,000 cr across the country

India produced 23.75 million tonnes of sugar till April-end in the 2013-14 sugar season that started in November, almost 3.57 per cent less than that of the corresponding period last year. Also, sugar dues accruing to farmers touched Rs 12,000 crore across the country, due to falling prices in the domestic market and high purchase price of sugarcane.

According to a statement issued by the Indian Sugar Mills Association (Isma), there is a remote possibility of the sugarcane arrears being cleared, as sugar prices have again started falling since the last fortnight.

Isma said measures initiated by the government to bailout mills and help them clear sugarcane dues such as interest-free loans, incentive on export of raw sugar  are also not yielding the desired results due to official delays.

“The sanction and disbursement of the interest-free loans are slow and only about 50 per cent of the intended loans have been received by the mills, delaying clearance of farmers’ arrears,” ISMA said.

On the cash incentive given by the government to help mills export raw sugar, ISMA said the raw sugar production incentive and exports thereof had also not given the desired benefits to millers and  farmers, when against the targeted export of 40 lakh tonnes, only about three-four lakh tonnes were exported.  

“Delay by the government to announce the incentive rate for April–May is further harming the sector,” the body of millers said.

ISMA said, till April-end, Maharashtra produced 7.65 million tonnes of sugar, as against 7.98 million tonnes during the same period last year, while in Uttar Pradesh, around 6.41 million tonnes had been produced as against 7.48 million tonnes last year. Maharashtra along with Uttar Pradesh produce more than 80 per cent of the total sugar production in India.

The production, however, has been more than the last year’s in Karnataka, Gujarat and Tamil Nadu, the statement said. “Delay in sugar exports incentive notification is also keeping  Maharashtra, Karnataka and Tamil Nadu millers in uncertainty, who still have raw sugar stocks of about six lakh tonnes, at the end of March 31 this year,”  ISMA said, adding that several export contracts, which were finalised with the expectation of Rs 3,300 per tonne of incentives are not getting executed.

ISMA said the delay in announcing the incentive for export of raw sugar for April-May is keeping Maharashtra, Karnataka and Tamil Nadu millers in uncertainty. They had raw sugar stocks of about 6 lakh tons at the end of March 31.

Export contracts finalised on the expectation of Rs 3,300 per ton as incentive are not being executed, burdening the domestic market with extra sugar, it added.