Sugar production has increased by 8 percent as on January 31, 2019, to 185.19 lakh tonne during the current sugar season (SS), against 171.23 tonne in the year-ago period.
However, considering the trend of yields, recoveries and drawal of sugarcane as well as the diversion of some ‘B’ heavy molasses to ethanol, sugar production in the current season is estimated to be 307 lakh tonne, a 5-6 percent lower than the 325-lakh tonne output in the previous season, said Indian Sugar Mills’ Association (Isma).
Isma had requested the Centre to increase the minimum ex-mill price of sugar to Rs 35-36 per kilo from Rs 29-30.
The apex body said it was estimated that cane price arrears across the country had reached about Rs 20,000 crore at the end of January 2019. Considering the pace of crushing in the remaining three peak months of current SS and if the current average all India domestic ex-mill price remains at Rs 29-30 per kilo, millers might not be able to clear the dues on time.
It is feared that it may further increase the arrears to uncomfortable levels by the end of April 2019. According to Isma, ex-mill sugar prices across the country were ruling in Rs 29-30 per kilo, which was about Rs 5-6 per kilo below the cost of production.
The Union government has been requested to increase the minimum ex-mill price of sugar to Rs 35-36 per kilo so that sugar mills could recover their costs and improve fund position for the payment of cane price to farmers and also service their debts and other obligatory payments.
Isma further said sugar exports were also not happening at the desired pace. Several mills are either not voluntarily willing to export sugar against their allocated export quotas or do not find it viable enough to do so. Therefore, to ensure that all mills fulfil their allocated export quotas, the government should enforce the quotas.
Coming to production, Isma said as on January 31, 2019, as many as 514 mills in the country have produced 185.19 lakh tonne, against 171.23 lakh tonne produced by 504 mills in the corresponding period of last season. The higher production this year has been because the mills had started crushing earlier this year.
In Maharashtra, this season, sugar production had been 70.70 lakh tonne so far, against 63.08 lakh tonne produced last year in the same period.
There were 191 mills operating as against 182 mills in the same period last year. The production in Maharashtra this year is expected to be less than actual production of last year. In Uttar Pradesh, 117 mills were in operation and had produced 53.36 lakh tonne till January 31, against 53.98 lakh tonne produced by 119 mills till the corresponding date of last year. Sugar recovery achieved this season is 0.81 percent higher than what was achieved last year.
In Karnataka, 65 mills have produced 33.40 lakh tonne, against 26.78 lakh tonne produced by 58 mills last year in the same period. In Tamil Nadu, 29 sugar mills commenced their crushing operations so far for the current SS and had produced 3.10 lakh tonne, against 2.12 lakh tonne by 30 mills in 2017-18 SS on the corresponding date.
Gujarat has produced 6.50 lakh tonne so far in the current season, with 16 mills in operation. Last year, 17 sugar mills were in operation and had brought out 6.07 lakh tonne till January 31, 2018. In Andhra Pradesh and Telangana, 24 mills have produced 3.70 lakh tonne, against 3.80 lakh tonne produced by these mills till the corresponding date last season.
In Bihar, Uttarakhand, Punjab, Haryana, Madhya Pradesh and Chhattisgarh, sugar production was 4.08 lakh tonne, 1.75 lakh tonne, 2.90 lakh tonne, 2.90 lakh tonne and 2.60 lakh tonne, respectively, Isma said.