Sugar mills in some states have advanced the closure of cane-crushing activity by a month for the 2012-13 season (October to September), stating availability of cane as the reason.

With adequate supply, the mills continue operations till April. Last year, mills in Maharashtra and Uttar Pradesh, the two largest producing states, continued operations until May, due to excessive cane output. This year, crushing is unlikely beyond March, says the industry.

“Fifty mills have already closed crushing operations so far this season, as against 21 last year, due primarily to lower cane availability,” said Abinash Verma, director-general, Indian Sugar Mills Association (Isma).

The Union ministry of agriculture, in its second advance estimate reported on February 8, said cane output would be 334.54 million tonnes for the 2012-13 crushing season, compared with its final estimate at 361 mt for the previous season. At the beginning of the season, they’d set it at 352 mt.

India Ratings attributed the fall in output to unfavourable climatic conditions, negatively impacting sowing in two key producers, Karnataka and Maharashtra. Recovery of sugar from cane in these two, at 10 per cent and 11 per cent, respectively, are among the highest in the country.

In Maharashtra, 30 of the 168 operational mills had shut as of yesterday for the current season, as compared to just two of 171 functional units by the same date last year.

“A major part of Maharashtra, especially central and eastern, was facing drought this year, which hampered the cane crop. Also, new private mills came into operation, resulting in lower availability for existing mills,” said Ajit Chougule, managing director of the Maharashtra State Federation of Co-operative Sugar Factories.

Cane output in Maharashtra, therefore, is set to decline around 19 per cent to 62.5 mt this season, against 77.1 mt in the same period last year. With recovery slowing to 11.15 per cent until now from 11.35 per cent last year, overall output in the state is estimated at 7.2 mt; it was 9.1 mt last year.

Chougule says 10 new private mills were set up in Maharashtra in the 2012-13 crushing season, with a couple of co-operative sector units, adding 50,000 tonnes of capacity to the existing 437,000 tonnes. In Karnataka, mills added 8,000 tonnes of capacity in 2012-13. Isma reported 22 mills there had closed their operations for the season. Operational mills have slowed on crushing, with three per cent lower output until February 28 at 3.02 mt.

In Uttar Pradesh, mills are yet to call off the season, with 119 units producing 5.04 mt of sugar until February 28, barely four per cent lower than the same period last year. With projected cane availability of 86-87 mt this season against 77 mt last year, the mills in UP might see an output of 7.92 mt.