UP sugar output shy of target

Yet rises seven per cent to 7.46 mn tonnes

Sugar output in Uttar Pradesh, in the just concluded crushing season, has fallen shy of 7.5 million tonnes (mt), which however, is still half a million tonnes below the target set for 2012-13.

The crushing season in UP concluded with 121 mills producing nearly 7.47 MT of the sweetener - seven per cent higher than last year's seven mt.

Earlier, industry body the Indian Sugar Mills Association (Isma) had pegged the state sugar output target at eight mt on account of lesser diversion of cane to local sweeteners and better recovery rates.

However, the target could not be achieved due to lower-than-expected aggregate sugar recovery of 9.19 per cent.

"We had expected sugar recovery in UP to touch 9.50 per cent. However, unfavourable weather conditions, including late rainfall, followed by heavy downpour in September last year, coupled with extended winters, have resulted in lower recoveries and consequently lower sugar output," UP Sugar Mills Association (UPSMA) President C B Patodia told Business Standard.

He said in Bihar, the recovery had fallen to 8.85 per cent this season, compared to 9.50 per cent in 2011-12. The mills in UP crushed 81.25 mt of sugarcane purchased from farmers societies, the interface between mills and actual farmers.

Meanwhile, Rs 6,394 crore is pending as arrears from UP mills to farmers. Against the total cane dues of about Rs 22,444 crore, mills have so far paid Rs 16,050 crore. Additionally, Rs 19 crore is pending from private mills as dues pertaining to the 2011-12 crushing season. Last year, total payments were Rs 18,200 crore in UP.

The sugar industry has pinned its hopes on the Akhilesh Yadav government to bail it out of the payments crisis. It has demanded various sops from the state and the Centre, including waiver of sugar levy and hiking import duty on sugar from 10 per cent to 60 per cent.

"The chief minister has promised us that he would not let the industry die," Patodia said. However, the Association is yet to hear from the government.