Sugar output may drop 12.38 pc to 28-29 million tonnes in 2019-20

The country's sugar production is expected to decline by 12.38 per cent to 28-29 million tonnes in the 2019-20 marketing season starting this month, due to sharp fall in the output in Maharasthra, a senior Food Ministry official said on Thursday.

Sugar output stood at 33.1 million tonnes during the 2018-19 marketing year (October-September).

"After taking inputs from the sugarcane growing states, total sugar output for the current year has been pegged at 28-29 million tonnes," the official told PTI.

The fall in overall output is mainly due to expected drastic decline in the sugar production in Maharashtra, the country's second largest producer of the sweetener, because of floods and drought, the official said.

"There would be at least 4 million tonnes decline in Maharasthra's sugar output this year," the official added.

Sugar mills have partially started crushing operation, but will commence in full swing from November 15 onwards. There are about 534 sugar mills in the country.

The government has fixed fair and remunerative price (FRP) of sugarcane at Rs 275/quintal for the current marketing year.

The FRP is the minimum price that sugarcane farmers are legally guaranteed to get from sugar mills. The crop, which has a more than 10 per cent recovery rate, will get an additional Rs 2.75 per quintal for every 0.1 per cent increase.

Farmers in many states such as Andhra Pradesh, Karnataka and Maharashtra, are paid on the basis of the FRP set by the Centre. Others, in Uttar Pradesh, Punjab, Tamil Nadu etc, have a State Advised Price.

It may be noted that sugarcane production is also estimated to be lower at 377.77 million tonnes in the 2019-20 crop year (July-June) as against 400 million tonnes last year, as per the Agriculture Ministry's first estimate.

Uttar Pradesh and Karnataka are other two major sugar producing states in the country.