Sugar output jumps 13% to 24.72 mn tonne in Oct-Mar

India's sugar production went up 13 per cent to 24.72 million tonnes in the first six months of this marketing year ending September, leading to a low price of the sweetener and record cane arrears of Rs 17,000 crore.
Sugar output of India, the world's second-largest producer after Brazil, stood at 21.87 million tonnes in the corresponding period of 2013-14 marketing year.
The marketing year for the commodity runs from October to September.
"Sugar production in 2014-15 sugar season till March 31, 2015, was 24.72 million tonnes, up 2.84 million tonnes as compared to sugar produced during the corresponding period in 2013-14 sugar season," Indian Sugar Mills Association (ISMA) said in a statement.

In Maharashtra, mills have produced 9.36 million tonnes of sugar till March against 7.06 million tonnes in the year-ago period.
Sugar mills of Uttar Pradesh have seen an output of 6.36 million tonnes till March compared to 5.91 million tonnes in the same period of 2013-14 marketing year.

In Karnataka, production rose to 4.25 million tonnes in October-March of 2014-15 as against 3.88 million tonnes a year earlier.
"Cane price arrears across the country have reached an all-time record level of Rs 17,000 crore and with the depressed ex-mill prices of Rs 2,100-2,200 per quintal in western & southern states and Rs 2,300-2,400 per quintal in northern states, mills are not able to generate funds to pay even the fair and remunerative price (FRP) to the sugarcane farmers," ISMA said.

The FRP is the minimum rate fixed by the Centre to purchase sugarcane from farmers.
"The government should come forward with some strategy to help the ailing sugar industry. Otherwise, it would become difficult for the mills to survive," ISMA warned.
The association noted that not much sugar is being exported despite the government's assistance of Rs 4,000 per tonne on raw sugar exports. This is because of a drop in futures price for raw sugar in the New York market.
The government has pegged the sugar output at 26.5 million tonnes in the 2014-15 marketing year as against 24.3 million tonnes in the previous year.

"With the anticipated higher sugar production in the current season as against the estimated consumption of 24.8 million tonnes, it is expected that sugar stocks at the end of 2014-15 season may surpass the normative requirement of 6 million tonnes, by 2.5 million tonnes more," ISMA said.