Sugar output may rise by 4% to 25.5 mn tonne in 2014-15

In what could be good news for the consumer but not-so-good for the mills, sugar production in 2014-15 crop marketing year is expected to be 25.5 million tonnes, four per cent more than the current season.

The national production estimate was arrived at after a three-hour long meeting between sugarcane commissioners of major producing states and top officials of the Union food ministry on Wednesday.

Higher production means sugar prices might remain depressed this year mounting the sugarcane arrears of mills. It will give some legroom to the government to re-start the export incentive on raw sugar, which has been discontinued because of low response.

“Mills in Uttar Pradesh (UP) have assured the state’s cane commissioner that they will start crushing operations soon,” food secretary Sudhir Kumar told reporters.

On sugar production this year, he said: “There will not be a situation of crisis. Production will be higher by few lakh tonnes than last year.”

Sugar production of Maharashtra is estimated at 9.1 million tonnes (mt), while that of UP is seen at 6.2 mt and Karnataka 4.25 mt, the official said.

The estimate, as compiled by Cane Commissioners, is similar to the one made by Indian Sugar Mills Association (ISMA), which had projected output at 25-25.5 mt.

UP Cane Commissioner Subhash Chand said: “Some cooperative and private owned mills in western UP will start crushing operations from November 10, while other will start factories from the third week of November.” Cane harvesting in the state has been delayed in some parts due to rains following cyclone ‘Hudhud’, he said, adding that the government expects 119 mills to operate this year. An official from the Karnataka government said that about 14 mills in south Karnataka have already started crushing operations and the rest will start this week.

Total sugar production in the state is expected to touch a new record of 4.2 million tonnes this year, from 4.1 million tonnes in 2013-14, he added.

The sugar stock at the beginning of this month was 6.92 mt according to the Centre’s estimates, while the ISMA has pegged the opening stock at 7.4 mt. India had exported 2.2 mt sugar in the 2013-14 marketing year on account of incentives provided by the Centre on the shipments of raw sugar.