Sugar mills in the key producing States of Maharashtra and Uttar Pradesh have started closing operations early for the ongoing 2015-16 season on account of lower cane availability.
Weak rainfall this year had impacted the cane crop resulting in lower output.
By February-end, about 107 sugar mills have shut down their operations this year, against 13 in the corresponding period last year.
Production of sugar has touched 19.94 million tonnes (mt) for the current season from October 1, 2015 till February 29, marginally higher than corresponding period last year’s 19.95 mt, the Indian Sugar Mills Association said. Millers have contracted 12.5 lakh tonnes for exports of which 10 lakh tonnes have already been moved from factories for shipments.
In Maharashtra, sugar production so far stood at 7.04 mt – a tad lower than 7.47 mt in corresponding last year. About 71 mills have stopped crushing operations, against three mills last year.
About 60 of these are located in the rain-deficit areas of Marathwada and Sholapur, ISMA said.
In Uttar Pradesh, sugar output stood at 5.36 mt (4.95 mt). About 13 of the 116 mills that are operating in the current season have closed their operations. Last year, of the 118 sugar mills that operated, six had shut their operations by February-end.
In Karnataka, 64 sugar mills have produced 3.6 mt – about 0.2 mt higher than the corresponding period last year. About 16 sugar mills have shut their operations compared to three sugar mills which had stopped crushing by February-end.
Sugar mills in Andhra Pradesh and Telangana have produced 6.70 lt by February-end, lower than the corresponding last year’s 7.29 lt. In Tamil Nadu, sugar production stood at 5.30 lt (4.78 lt).