Sugar output up 21% in season's first fortnight

Most of the sugar mills that have started crushing are in Maharashtra followed by Karnataka and Gujarat

Of India’s 509 sugar mills, 141 operating ones have posted a 21 per cent growth in production so far this season.

Data compiled by the Indian Sugar Mills Association reported the country’s sugar production at 560,000 tonnes by November 15 against 462,000 tonnes in the same period last year (with 108 operational mills).

Most of the mills that have started crushing are in Maharashtra, followed by Karnataka and Gujarat. Crushing units in Uttar Pradesh (UP) haven’t started activities.

With the UP government fixing the state advised price, at the same level as last year and announcing some tax concessions, as well as financial assistance, mills in the state are expected to start by end-November.

The opening stock of sugar with the industry stood at 7.5 million tonnes (mt) as on October 1. Isma, however, stood by its earlier sugar production estimates between 25 mt and 25.5 mt against the food ministry’s projection of 25.05 million tonnes. During the last crushing season (October-September), total sugar output in India was 24.4 mt. The country’s annual sugar consumption is estimated at 24.7 mt.

Estimating sugar surplus at 2 mt, the sugar sector has urged the government to continue with the export incentive scheme and help convert the surplus sugar into ethanol.