Sugar production recovers after UP mills become operational

ISMA data shows 2% rise in output at 4.91 mn tonnes in year to Dec 15

Sugar production recovered well in the first few weeks of the current season despite delayed commencement of crushing in Uttar Pradesh, India’s second largest sugar producing state.

Data compiled by the apex trade body Indian Sugar Mills Association (ISMA) estimated sugar production at 4.91 million tonnes by December 15, up two per cent from 4.82 million tonnes in the same period last year.

The delay in the commencement of mills’ operationalisation had pulled down sugar output by 2.7 per cent by the end of November 2012.

But with crushing starting well in Uttar Pradesh, which actually commenced late, the sugar production upto December 15, 2012 has crossed the production achieved around same time last year, a note from ISMA said.

 

Currently, 455 mills are operational December 15, 2012, lower by 18 as compared to 473 mills last year.

Maharashtra produced 1.88 millon tonnes of sugar as against 1.83 million tonne of sugar last year, with 155 mills operational to-date, 10 less than last year (14 less in the cooperative sector, but 4 more in the private). Nevertheless, capacity utilisation of Maharashtra mills is better, when they have crushed more cane, as compared to last year.

ISMA has estimated around 6.5 million tonnes of sugar production from Maharashtra in 2012-13, though with a shorter season, mainly due to lower production and also diversion of sugarcane to fodder in Maharashtra. Recoveries are almost same at last year level i.e. 10 per cent.

Uttar Pradesh has already produced 1.03 million tonnes of sugar. This is about 20 per cent less than last year same time. Last year, 121 mills were operational as against 116 mills this year. This is because a few mills is East UP have to still start their crushing. With 8.56 per cent sugar recovery till now, it is better than last year. ISMA is expecting a total sugarcane production of 140 million tonnes, of which 85-86 million tonnes would be available to the sugar industry, at about 61 per cent drawl.

Karnataka has produced 1.1 million tonnes of the sweetener against 905,000 tonnes last year.

Tamil Nadu and Andhra Pradesh both have produced about 25 per cent more sugar than last year till date. While Tamil Nadu produced 200,000 tonnes with 29 of operational mills, Andhra Pradesh, with a lesser number of operational mills, has produced about 170,000 tonne of sugar with higher cane crush but little lesser reported recoveries as compared to last year.

ISMA is expecting that sugar millers will pay about Rs 66,000 crore for the sugarcane during 2012-13. With lower sales realisation and higher sugarcane payment to farmers, ISMA has already requested the government to increase the import duties on raw sugar from current level to the normal rate of 60 per cent, so as to avoid cane price arrears during the season.