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News
Sugar output may plunge 14% as weak rains shrink cane acreage
Date:
02 Jul 2019
Source:
The Economic Times
Reporter:
ET Bureau
News ID:
40404
Pdf:
Nlink:
Pune: India’s sugar production in the 2019-20 crop year is likely to be 14.3 per cent less than the previous year’s at 28.2 million tonnes, mainly due to the decline in acreage in Maharashtra and Karnataka, according to the Indian Sugar Mills Association (ISMA).
“Based on the satellite images procured in the latter part of June 2019, the total acreage under sugarcane in the country is estimated to be around 49.31 lakh hectares in 2019-20, which is over 10 per cent lower than 2018-19 sugar season’s cane area of around 55.02 lakh hectares,” the industry body said in a press release issued on Monday.
The sugar crop year in India is from October 1 to September 30.
According to ISMA, Uttar Pradesh, the largest sugar producing state, is likely to see a 2per cent decrease in area under cane, while acreage in Maharashtra and Karnataka is likely to be down by about 30 per cent and 16per cent, respectively. “Sugar production in UP in 2019-20 is estimated to be around 120 lakh tonnes (12 million tonnes), which is more or less at the same level of 118.23 lakh tonnes produced in 2018-19,” said ISMA. The fall in acreage in Maharashtra is mainly due to poor rainfall since September 2018, which has kept reservoir levels low and affected sowing of 15-month and 12-month crops. “As against the cane area of 11.5 lakh hectares in 2018-19 SS (sugar season), area is expected to decrease to 8.23 lakh hectares in 2019-20. Sugar production is, therefore, estimated to be about 70 lakh tonnes (7 million tonnes) in 2019-20, as against 107.19 lakh tonnes (10.72 million tonnes) produced in 2018-19,” ISMA said. “Karnataka's sugar production in 2018-19 is estimated to be around 35 lakh tonnes (3.5 million tonnes), as against 43.65 lakh tonnes (4.365 million tonnes) expected to be produced in 2018-19,” ISMA said.
According to ISMA, India has produced about 32.809 million tonnes of sugar in the 2018-19 season till June 30, while total sugar production in 2018-19 is expected to be 32.9–32.95 million tonnes by September 30.
ISMA has estimated production of about 28.2 million tonnes of sugar in the season 2019-20, which is about 4.7 million tonnes lower than the current 2018-19 production of around 32.95 million tonnes, down 14.26 per cent. “The opening stocks as on October 1, 2019 is expected to be an all-time high of around 14.5 million tonnes. As compared to a normative requirement of around 5 million tonnes on October 1 of any year as opening stocks, the industry is unnecessarily carrying about 9.5 million tonnes of sugar inventory,” said ISMA.
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