Even as alarm bells have started ringing over the slide in sugar production in the country, Uttar Pradesh is set to reclaim its position as top producer, filling the vacuum created by Maharashtra’s low performance due to a drought-like situation.
“With Uttar Pradesh revising its output upwards to 8.3 million tonne for the ongoing 2016-17 marketing year, it is all set to surpass Maharashtra as the country’s largest sugar producer. The last time UP had surpassed Maharashtra in sugar output was in the 2006-07 season,” a state government official said, adding the state had initially estimated 7.7 million tonne of sugar production for the 2016-17 marketing year (Oct-Sept) against 6.85 million tonne in the previous year.
Not only have adequate rains bolstered the yield but good cane varieties have also boosted better recovery.
“Sugar mills in UP had started early crushing this season and the average recovery is around 10.13%, which is very good”, the official said, adding that as per updated data, till February 20 this year, sugar production stands at 56.22 lakh tonne against last year’s 47.63 lakh tonne during the same period.
Even the cane payment in UP this year has seen an upward mobility with sugar mills already paying 76.63% of cane dues. “Due to steady sugar prices, mills in UP have made better payments. Out of the total R14,497.31 crore of cane dues till now, mills have already paid R11,110.01 crore, which accounts for 76.63%,” said an official of the department of UP Sugar and Cane Development.
For the last many years, UP had suffered due to low recovery as well as low sugar prices, leading to huge accumulation of cane arrears. The state government had done its bit to help the industry by not increasing the cane price for four consecutive seasons but that was insufficient as the industry had accumulated dues of Rs 2,428.31 crore at the end of the last season.
However, with demands coming in from some quarters that the Centre should offset a “shortage” of the sweetener by allowing imports, there are rumblings within the industry, which feels imports of the sweetener would be disastrous for the industry as well as for the farmers.
“The government may not be politically comfortable with sugar prices hovering around R40/kg, but it must understand that this is a realistic price and if the government tries to artificially bring it down by allowing imports, it would once again lead to building up of cane arrears. If the mills do not get R38/kg at mill gate, they will not be able to make a payment of R320/kg on cane, which is the State Advised Price in UP,” said Sudhir Panwar, member of UP Planning Commission and president of Kisan Jagriti Manch.
The point was also driven by Raju Shetti, founder leader of the All India Ganna Utpadak Sangathana.
“The current price of sugar is perfectly reasonable and there is sufficient stock. Planting of sugarcane for the next season is also expected to be good. The country doesn’t need to import sugar. If the government allows imports, it would artificially pull down prices which would be harmful for farmers and millers,” he said, adding that if sugar prices are high, farmers would stand to benefit.
Panwar, too, felt that the Centre as well as the import lobby are trying to create a boogie of sugar shortage in the name of helping consumers but the move will boomerang. “This may appease the consumers for one year, but it will have a lasting effect on the industry,” he added.
Maha confident of regaining top spot
Pune, Feb 22: Sugar mills in Maharashtra are confident of regaining the top position as the country’s largest sugar producer in the sugar season of 2017-18. Millers say in 2017-18 season, the state is likely to produce a bumper crop with at least 85 lakh tonne cane expected to be crushed and it will regain its top position. They are planning to meet Union finance minister Arun Jaitley next week with a demand for rescheduling of loans taken by the mills. Maharashtra is struggling with around 45 lakh tonne output a year because the water table fall leading to drought like conditions. At least 124 mills in the state have completed crushing operations for the season, which is turning out to be a very short one. According to Shivajirao Nagawade, chairman of Maharashtra State Cooperative Sugar Factories Federation, the state has been suffering from two consecutive droughts and therefore the crop output was affected. Around 45 lakh tonne of cane has been crushed so far and 124 factories have shut down operations, he said.