Sugar production in the country has been hit significantly by the drought in southern and western India over the last two years. The output of sugar mills dropping by over 18 per cent to 162.45 lakh tonnes in the ongoing season (which began on October 1, 2016) from 199.43 lakh tonnes during the same period of the last season.

“As many as 257 sugar mills are continuing crushing operations as on February 28, 2017, whereas in 2015-16, 390 mills were in operation on the same date,” said an official release from industry body Indian Sugar Mills Association.

Production of sugar has been substantially lower in Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana due to a drought in the southern and western parts of the country over the last two years.

Sugar mills in Maharashtra have produced just 41.15 lakh tonnes of sugar in the last five months as compared to 70.58 lakh tonnes produced in the same period last year.

In Karnataka, all sugar mills except one have stopped crushing operations, producing 20.50 lakh tonnes till February-end against 36.15 lakh tonnes produced in the same period last year, the release said.

Due to lower production in the region, stocks held by the sugar mills in the States of Maharashtra, Karnataka, Andhra Pradesh and Telangana are notably lower than what was held on January 31 last year.

North stocks higher

On the other hand, sugar stocks held by the mills in North India, especially Uttar Pradesh, is significantly higher compared to January 31 last year due to higher sugarcane production.

“Considering that 156 sugar mills are still operating in the Northern part of the country and are likely to continue till April 2017, it is generally expected that a substantially higher quantity of sugar will further be produced from this region in comparison to the drought affected States in the West and Southern parts of the country. This will add to the stocks held by mills in North India,” the release said.