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The food ministry estimates a record availability of sugar in the new season starting October 1, 2013 ( 2013-14) to the tune of 295 lakh tonne.
According to officials, this estimate includes expected production of 225 lakh tonne in the new season on a conservative scale and carry over stock of around 70 lakh tones across states.
Officials added that the production could go well upto 228-230 lakh tonne going by the sowing statistics across states available till date following good monsoon. They added there are not many reports of diversion of sugarcane into fodder as well this year as was noticed last year. Last season, India has produced around 230 lakh tonne.
However the carryover stocks is debated among industry and government. According to government officials the carryover stock which will be the opening stock for the balance sheet for the new season is around 65 lakh tonne whereas the industry estimates it to be around 80 lakh tonne.
Officials said that factoring in all probabilities, the carry over stock may be put around 70 lakh tonne. Usually, the carry over stock is around 60 lakh tonne in various years and it has increased for the coming season due to surplus production last season, said officials.
Meanwhile, the arrears dues to be paid to cane farmers across states have come down from Rs 8,000 crores to RS 5,000 crores following expedite payment made by mill owners to the farmers. The payment issue has been expedited by the recent Supreme Court decision which has directed speedy payment of farmers’ dues by the mill owners.
Sugar is the largest organised agro-based industry in India with allied industries like molasses, bagasse, power (co-generation) etc supported by sugarcane, whose annual economy is reportedly estimated over Rs 30,000 crore. Uttar Pradesh is the largest producer of sugarcane in the country with 22.13 lakh hectares of area under sugarcane last season.
According to the latest report of Commission of Agricultural Cost and Prices (CACP) the sugar sector could be developed as an energy hub producing sugar, ethanol from molasses, and power from bagasse so as to make it an income generation avenue for farmers in rural areas.
The commission has advised taking sugar out of the public distribution system (PDS) by replacing it with income transfers to the poor PDS consumers as best option for the industry while favouring decontrol of levy and regulated mechanism for sugar for PDS. For the non levy sugar, the commisison is of the view that the system could be replaced by buffer stock policy of 2 million tonnes to stabilize open market prices along with liberal trade policy.
