Sugarcane crushing in state to remain flat in 2011-12

Even as the sugarcane crushing season starts from next month, sugar millers expect cane crushing in the state likely to remain flat in the current year.

As per the estimates provided by the sugar industry players, sugarcane crushing in the state this year is likely to remain flat at 13-13.5 million tonnes. "Cane crushing by all the co-operative sugar factories in Gujarat is seen flat this year. The stagnancy in sugarcane crushing can be attributed to the fact that there was no increase in sugarcane plantation in 2011-12," Dilip Bhakta, chairman, Madhi Sugar Factory.

Sugarcane in Gujarat is mainly planted on irrigated land and there has been no rise in the acreage, which stood more or less at around 200,000 hectares. Good monsoon in cane growing regions of Gujarat ruled out fears of a sharp declined in the acreage of the crop.

According to Bhakta, cane yield too is likely to remain unchanged at 70-72 tonnes per hectare in Gujarat this season. Meanwhile, the government gives a conservative estimate of cane crushing this year at 12.5 million tonnes lower by about a million tonnes against the industry's estimate of around 13 million tonnes.

"Cane crushing in the state would remain in the range of 12.4 to 12.6 million tonnes for the current season. All 14 private khadsari units (cottage sugar mills) and 18 cooperative sugar mills are likely to operate at the same level as they did last year. The good part is that we could save ourselves from a possible decline in the sugarcane production as we received fairly good rainfall," informed a senior official from state sugar directorate.

According to industry estimates, with cane crushing being projected at around 13 million tonnes, sugar production in the state would be about 1.3 million tonnes. The recovery from sugarcane is expected to remain over 10 per cent.

The industry had raised concerns of a possible fall in the recover below 10 per cent last year due to poor quality of cane and extended crushing season. However, last year the recovery stood around 10.04 per cent.

As per the government data, recovery percentage from sugarcane crushing was 10.4 per cent in 2008-09, while in 2009-10 it stood at around 10.8 per cent. Sugar production in the state is 100 per cent controlled by cooperative sector, while there are a few private khadsari units (cottage sugar mills).