Indian sugar mills association

UP sugar mills to advance crushing by a month to boost supply

Date:	31 Aug 2017

Source:	Business Standard

Reporter:	Dilip Kumar Jha

News ID:	22641

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Large sugar mills in Uttar Pradesh have decided to begin crushing in October this year, almost a month ahead of schedule, to boost supply of the sweetener and control shifting of cane supply to jaggery and khandsari units.

Normally, sugar mills in UP start the crushing activity in early to mid-November due to late maturing of standing cane. The mills in western Karnataka and Maharashtra, on the other hand, begin crushing by mid-October with early variety of cane.

The Indian Sugar Mills Association (ISMA), the apex industry body, has found after a survey of its member mills, that large sugar mills in UP are going to advance their cane crushing activity by a month.

The industry estimates a bumper cane crop in UP for the crushing season beginning October 2017, the second year in a row. The state reported a sugar production of 8.2 million tonnes (mt) for 2016-17.

“Many sugar mills in Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu have given us in writing that they would start crushing by mid-October this year. Sugar mills in UP normally do not start crushing in October,” said Abinash Verma, director general, ISMA.

“Sugar mills across all the four aforementioned sugar-producing states are estimated to produce 800,000 tonnes of the sweetener in October,” said Verma.

The commencement of crushing in October is set to benefit the mills, the government, and consumers alike, as it would help control shifting of cane supply to jaggery and khandsari units (kolhus), especially in western UP. In absence of procurement of sugarcane from the mills, small and marginal farmers in UP supply their produce to kolhu to fetch instant cash. With early start, the mills will start generating early revenues also.

Secondly, the government has taken a number of steps to control sugar price hike, including imposing stock limits on the mills. The prices had surged over two months ago after reports of a decline in its output this year.

ISMA estimated India’s sugar output at 20.3 mt this year, compared to 25.1 mt last year.

“Sugar production in Maharashtra is estimated at 7 mt for 2017-18, compared to 4.2 mt in the previous year and 8.4 mt for 2015-16. Cane output in Tamil Nadu and Karnataka is estimated to remain subdued,” said B B Thombare, president, West Indian Sugar Mills Association (WISMA).

Data compiled by the Ministry of Agriculture showed cane sowing at 4.978 million hectares by August 25, compared to 4.56 million ha by the same day last year.

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