UP sugar mills want restriction on crushing by khandsari units

Mills say the move will release 10 million tonnes additional sugar in the market. 

Sugar mills in Uttar Pradesh (UP), the country’s second largest sugar producing state, are seeking a restriction on the operation of gur and khandsari units until January 15 next year so that more sugarcane is available for crushing by mills. 

The UP Sugar Mills Association, the apex body of sugar mills in the state, has written a letter to the state government in this regard. It has also sought a ban on the export of gur from UP to other states during period when crushing takes place. 

Sugar crushing season in UP usually begins in October and runs up to March or April, depending on the availability. The industry is hopeful of producing additional one million tonne of sugar in the next season if such restrictions are imposed. “The area under sugarcane in UP which was approximately 2.1 million hectares in 2008-09 is expected to come down to 1.8 million hectares in 2009-10, a drop of nearly 16 per cent,” the association has said in its letter. Currently, there is no restriction on the starting date of gur or khandsari units. 

“In 1989, the state government had imposed a restriction on khandsari units. They were not allowed to start before December 25. Keeping in view the huge scarcity of sugar in the country and the sharp surge in prices, we hope the state government to take necessary action in the matter,” said an association official. 

This was done on the direction of the union food ministry which directed all sugar producing states to prevent khandsari units from commencing operations before January 1980. 

The country’s sugar production in the current season (October-September) is estimated at 14.7 million tonnes, a dip of 45 per cent from previous year’s output. Production in UP also dipped from 7.3 million tonnes to 4.06 million tonnes. As per the association’s estimate, next season’s sugar output in the state may be even lower as over 47 districts have been hit by drought. 

Industry estimates show that over 110 million tonnes of sugarcane was diverted to products like gur in the country during the current season, which could have been used to produce about 10 million tonnes of sugar and prevented the current shortage.