NEW DELHI, FEBRUARY 17:  

Sugar production by 472 mills was higher at 173.37 lakh tonnes in the ongoing 2015-16 marketing year that runs from October-September (till February 15), compared with 167.24 lakh tonnes (lt) produced by 516 sugar mills in the same period last year, the Indian Sugar Mills Association has said.

The sugar producers’ body also said that the mills had started repaying loans taken last year and said they were facing “difficulties” in paying cane arrears to farmers.

 However, it said ex-mill sugar prices has started improving from the beginning of the current season but had seen a fall in the past 15 days, by a couple of rupees per kg. 

With a fall in global prices, the pace of contracts for further exports has slowed down.

“Around 9.5 lt of sugar has been despatched by mills across the country for exports against the quota fixed by the government. With a fall in the global prices, the pace of contracts for further exports is slowed down,” it added.

Overall sugar production this season is up by 6.13 lt compared with the corresponding period last year, ISMA said, adding that of the 511 mills that started crushing in 2015-16 sugar season, 39 had closed their operations.

Mills in Uttar Pradesh have so far produced 45.55 lt (42.25 lt). However, output was lower in drought-hit Maharashtra with 177 sugar mills producing 62.70 lt – 3.5 per cent lower than last year’s 65 lt.

 In Karnataka,  64 sugar mills produced 32.21 lt (28.55 lt).