Sugar Production Tumbles 30% In October-December 2019

India's sugar production has dropped sharply by 30.22% to 7.79 million tonne in the first three months of current marketing year ending September, but ex-mill prices have remained stable so far, helping mills clear cane payment to farmers on time, ISMA said on Thursday. However, sugar exports are happening at a good pace, Indian Sugar Mills Association (ISMA) quoting market data said, adding mills have so far contracted for shipment of over 2.5 million tonne of sugar under the government's MAEQ (Maximum Admissible Export Quantity Quota).

Ex-mill sugar prices have remained steady in the range of Rs 3,250-3,350 per quintal in north India and at Rs 3,100-3,250 per quintal in the south India, the industry body added. Since the centre has not increased the Fair and Remunerative Price (FRP) for 2019-20 as also the state governments like Uttar Pradesh, Uttarakhand and Punjab have not hiked the State Advised Price (SAP), ex-mill prices remain stable, mills are in a better position to be able to pay cane price to the farmers on time.

The country's total sugar production has dropped to 7.79 million tonne till December 2019 from 11.17 million tonne in the same period of the 2018-19 marketing year (October-September). In its first estimate, the industry body had pegged sugar production lower at 26 million tonne this year from 33.16 million tonne in 2018-19. The second estimate will be released next month. Sugar production in Maharashtra -the country's largest sugar producing state -dropped to 1.65 million tonne till December 2019, as against 4.45 million tonne in the same period last year, the data showed. The average sugar recovery in Maharasthra has declined to 10% from 10.5% achieved in the year-ago period due to loss of sucrose content in the flood-affected sugarcane crop.

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