Sugar production rises 7.7% till 15 February in sugar season 2018-19

Maharashtra and Karnataka sugar mills contributes mainly to higher production

In the current October-September sugar season (SS) 2018-19, 507 sugar mills have produced 219.30 lakh tonnes of sugar as on 15 February 2019, as compared to 203.55 lakh tonnes produced by 494 mills on the corresponding date last year, indicating at a growth of 7.4%. Higher production this year is mainly because Maharashtra and Karnataka sugar mills started their crushing earlier this year. Overall, the country is expected to produce less sugar this season as compared to last season.

In Maharashtra, sugar production till 15 February 2019 was 82.98 lakh tonnes, compared with 74.74 lakh tonnes produced last year same period. In the current SS 2018-19, 6 mills have closed their crushing operations in the State while 187 sugar mills are operating, as against 183 mills operated last year on the corresponding date. Due to early start of mills in Maharashtra, the mills therein are expected to close earlier than last year, especially when the sugar production from Maharashtra will be less than last year.

In UP, 117 sugar mills are in operation and they have produced 63.93 lakh tonnes of sugar till 15 February 2019, compared with 64.54 lakh tonnes produced by 119 mills on the corresponding date of last year. The sugar recovery achieved this season is about 0.77% more than what was achieved so far during the last season, but the yield per hectare is lower than last year, because of which the total production in U.P. will be less than last year.

In case of Karnataka, till 15 February, 2019, mills have produced 38.74 lakh tonnes of sugar, 10 mills have closed their operations in the State while 57 mills are in operation. During the corresponding period last year, 52 mills had produced 30.73 lakh tonnes sugar.

In case of Tamil Nadu, 33 sugar mills are in operation and have produced 3.50 lakh tonnes of sugar, as compared to 2.90 lakh tonnes produced by 28 sugar mills in SS 2017-18 on the corresponding date.

Gujarat has produced 7.78 lakh tonnes of sugar till 15 February 2019 with 16 sugar mills in operation. Last year, 17 sugar mills were in operation and they had produced 7.25 lakh tonnes of sugar on the same date.

In Andhra Pradesh and Telangana, 24 sugar mills have produced 4.50 lakh tonnes as on 15 February 2019, as compared to 4.60 lakh tonnes produced by 23 sugar mills on the corresponding date last season.

In Bihar, Uttarakhand, Punjab, Haryana and Madhya Pradesh & Chhattisgarh, sugar production till 15 February 2019 has been in the order of 4.90 lakh tonnes,2.15 lakh tonnes, 3.75 lakh tonnes, 3.60 lakh tonnes and 3.20 lakh tonnes, respectively.

Government has increased the Minimum Selling Price of sugar from Rs. 29 per kilo to Rs. 31 per kilo, which will generate additional revenue for the sugar mills and help them in payment of cane price arrears.

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