Indian sugar mills association

India likely to face 7.3 per cent drop in sugar production in 2016-17

Date:	09 Jul 2016

Source:	merinews

Reporter:	Vivaan

News ID:	5744

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India's 2016-17 sugar production is likely to drop by 7.3 per cent mainly due to severe fall in production in Maharashtra, one of the top sugar producing States in the country, as per preliminary estimates of industry body, Indian Sugar Mills Association (ISMA).

"Based on the satellite images procured in the latter part of June 2016, the total land possessions under sugarcane in the country is estimated to be around 49.91 lakh hectares in 2016-17 Sugar Season (SS), which is 5.5 per cent lower to 2014-15 sugar season's cane area of around 52.84 lac ha", a release from ISMA said.

Mainly due to drought like situation last year, pitiable rainfall and lesser water availability for irrigation, Maharashtra's cane area has declined in 2016-17 SS. As against the cane area of 10.5 lac ha. in 2015-16 SS, area is estimated to come down to 7.80 lac ha. in 2016-17. Therefore, sugar production is estimated to be around 61.5 lac tons in 2016-17 SS, as against 84.08 lac tons produced last year.

Similarly, due to the same reasons, sugarcane area in Karnataka too has declined in 2016-17. It was 5.10 lac ha. in 2015-16 SS, while this year area under sugarcane is expected to be about 4.15 lac ha. Thus, sugar production in 2016-17 SS is estimated to be around 32.2 lac tons, as against 40.71 lac tons expected to be produced in 2015-16 SS.

However, Uttar Pradesh, the leading sugarcane producing State in the country, is estimated to have a slightly higher area under sugarcane at 23.35 lakh hectares, as against 23.02 lac ha. last year.

"Unlike Maharashtra and North Karnataka, the weather has been good in U.P. with adequate rainfall. Thus, sugar production in U.P. in 2016-17 SS is estimated to be around 75.40 lakh tons, which was 68.22 lac tons in 2015-16 SS," said the statement.

Sugarcane area in Tamil Nadu in 2016-17 SS has also increased to 2.65 lac ha. as against 2.50 lac ha. in 2015-16 SS. Due to better rainfall and expected improvement in yield, sugarcane production will also increase, resulting in better sugar production of 15.6 lac tons in 2016-17 SS as against 13.93 lac tons produced in 2015-16 SS.

During 2015-16 SS, till 30th June, 2016, about 248.15 lakh tons of sugar has been produced and another 2.75 lakh tons is expected to be produced in the special season till September, 2016 in Tamil Nadu and Karnataka, taking total sugar production in 2015-16 SS to 251 lac tons.

Thus, ISMA estimated production of 232.6 lakh tons of sugar in the season 2016-17. This is about 18-19 lac tons less than the current 2015-16 SS production of around 251 lac tons.

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