Sugarcane output in Guj may dip by 25pc

After a bumper production in 2007-08, Gujarat is likely to witness decline in cane production this year.

Government officials and industry players estimate sugarcane production in 2008-09 likely to dip by around 20 to 25 per cent in 2008-09 on account of lower plantations.

Around 1.90 lakh hectares of land witnessed sugarcane plantation in 2007-08 and 127 lakh metric tonnes of cane went for crushing. Gujarat had produced 13.50 lakh metric tonnes of sugar during November-May 2007-08. "However, sugarcane production is expected to be lower this season starting from November," said G. K. Fakir, Director of Sugar, Gujarat government.

"Lower plantation of sugarcane is likely to result in 20 to 25 per cent downfall in the production in 2008-09," said Mansinh Patel, president, Federation of Gujarat State Co-operative Sugar Factories. Total area of 1.90 lakh hectares was brought under sugarcane plantation in 2007-08, which has come down to approximately 1.65 lakh hectares in 2008-09.

Erratic rainfall in the beginning of the monsoon has also impacted the productivity of sugarcane in the state, which saw 130 lakh metric tonnes of sugarcane production last year, said Dilip Bhakta, chairman of Madhi Sugar Co-operative.

Sugar production in the state is likely to in the range of 11.50 to 12 lakh metric tonnes in 2008-09. The total sugar production in the state was 13.50 lakh metric tonnes. Industry player believe the prices of sugar to increase in the wake of estimates of lower sugar production.

In Ahmedabad markets, prices of sugar M-30 are currently quoted at Rs. 1,760 to Rs. 1,785 per quintal, while that of S-30 are hovering around Rs. 1,740 to Rs. 1,720 per quintal.

Sugar production in Gujarat is entirely governed by the co-operative sector. Gujarat has total 17 sugar co-operative societies, which collectively have a total turnover of approximately around Rs. 1,800 crore.

Out of the total 17 sugar co-operative societies, five are in Central Gujarat and 10 in South Gujarat and 2 in Saurashtra region.

Bardoli sugar factory has the highest sugarcane crushing capacity of 11,000 metric tones per day, while Chalthan, Sayan, Madhi and Gandevi Sugar have crushing capacity of 5,000 metric tones each.