Sugar output down 11.7%

India’s sugar output declined 11.7 per cent in the first four months of this cane crushing season (October 2013– September 2014) over the same period last year, due to a late start.

Data from the Indian Sugar Mills Association (Isma) showed total output at 16.9 mt between October 2013 and February 2014, compared to 18.8 mt in the corresponding period last year. Currently, 460 mills are operational, 23 mills more than at the same time last year.

“The season started with a 10-15 days delay due to farmers’ agitations in Uttar Pradesh and Maharashtra, the two largest sugar producers, over fixation of cane prices. In north Karnataka,  crushing was delayed 15 days on high cane prices announced by the state government. Therefore, sugar output has been lower so far this year,” said Abinash Verma, director-general of Isma.

Mills in Maharashtra crushed 51.5 mt of cane to produce 5.7 mt of sugar, a 11.1 per cent recovery.

At the same time last year, mills in the state had crushed 59 mt to produce 6.6 mt of sugar, a 11.15 per cent recovery. Till date, 25 mills have closed operations for the season 2013-14; last year, 36 had stopped by February 28. In Uttar Pradesh, mills have produced 4.3 mt of sugar from 47.5 mt of cane crushing, a 8.99 per cent recovery. Last year’s comparative figures were 56 mt of cane to produce five mt sugar, with 8.94 per cent recovery. All 119 mills are still under operation, against 118 in the same period last year.

Mills have total unpaid arrears (to cane farmers) of around Rs 14,000 crore, of which those in UP owed Rs 10,000 crore, as on February 28. “Due to late commencement, the crushing season will end seven to 10 days later this year,” said Verma.