MEDIA RELEASE : SUGAR PRODUCTION UPTO 28TH FEBRUARY, 2015

• As on 28^th February, 2015, 511 sugar mills in the country were in operation and they produced 194 lac tons of sugar, as compared to 170.43 lac tons produced by 455 sugar mills as on 28^th February 2014. Sugar production in 2014-15 SS till 28^th February 2015 is 23.57 lac tons higher than that of sugar produced by mills on the corresponding date last year.

• U.P. has produced 49.60 lac tons of sugar till 28^th February, 2015 as against 43.40 lac tons of sugar production during 2013-14 SS till 28^th February, 2014. As on date, out of 118 sugar mills which started operation during the current sugar season, 3 sugar mills have closed their crushing operations.  

• In Maharashtra, 177 sugar mills have produced about 74 lac tons of sugar till the end of February 2015, as against 57.54 lac tons produced in 2013-14 SS on the corresponding date.  Last year 129 sugar mills were under operation as on 28^th February, 2014.  One sugar mill in Maharashtra has closed its crushing operation for the current season.

• 63 sugar mills of Karnataka have produced 32.80 lac tons of sugar as on 28^th February, compared with 30.94 lac tons of sugar produced in 2013-14 SS till 28^th February 2014, when 56 sugar mills were under operation. 

• Andhra Pradesh and Telangana sugar mills have produced 7.30 lac tons of sugar upto 28^th February 2015.  Last year, during the same period, there was a production 7.72 lac ton during the corresponding date.  As on 28^th February, 2015, out of 31 sugar mills of Andhra Pradesh and Telangana which operated during the current 2014-15 SS, 8 sugar mills have already closed their crushing operations.

• In Tamil Nadu, 42 sugar mills have have produced 4.60 lac tons of sugar as on 28^th February, 2015, as compared to 6.50 lac tons of sugar produced by 37 sugar mills in 2013-14 SS till 28^th February 2014. 

• As regards Gujarat, 8.40 lac tons of sugar have been produced by 19 sugar mills as on 28^th February, 2015.  Last year, 17 sugar mills were in operation and they produced 8.64 lac tons of sugar on the corresponding date.

• In Bihar, 11 sugar mills have produced 1 lac tons of sugars more than last year’s production till 28^th February.  During 2014-15 SS, till 28^th February 2015, sugar mills have produced 4.75 lac tons of sugar, as compared to 3.73 lac tons of sugar produced by these mills on the corresponding date.

• In case of Punjab, 16 sugar mills which are in operation have produced 3.70 lac tons of sugar upto 28^th February 2015, as compared to 3.67 lac tons produced by 13 sugar mills as on 28^th February last year.

• In case of other States viz. Uttarakhand, Madhya Pradesh and Haryana sugar production till 28^th February 2015 was almost similar to what they produced in 2013-14 SS till 28^th February.

• As informed by the Hon’ble Food Minister in the Parliament, cane price arrears upto 15^th February 2015 was Rs. 14,500 crore.  This is higher than even the peak arrears that was recorded in the last sugar season of Rs. 13,000 crore at the end of March 2014.

• The current sugar price being lower than the last year and cane price the higher, the cane price arrears are expected to go up further from the current Rs. 14,500 crore.

• The Central Government has recently approved Rs. 4000 per ton of incentive for production and export of raw sugar for 14 lac tons.  However, the Government notification is still awaited.  In the meanwhile, the global prices have fallen.  Demand for raw sugar for export purposes is, therefore, on the lower side, and will flow in as and when global prices again improve by even 50 points.

• Payment of the incentives for the 7.5 lac tons of raw sugar exported between March and September, 2014, last year is expected to be made shortly in the month of March, 2015.  It is expected that budgetary provision in the Revised Estimate would have been made by the Food Ministry for settling all the previous claims against the raw sugar exports. 

• The Government has put a condition that mills having ethanol production capacity will have to supply 25% of their alcohol production as ethanol for the blending programme to be eligible for the raw sugar export incentive.  Out of around 100 cooperative sugar mills, 60 do not have distilleries, and, therefore, will not come under the purview of the condition.  Out of the balance, more than half would be already supplying ethanol.  A few of them may not have ethanol production capacity.  Therefore, the condition will at best impact 5 to 8 sugar mills of Maharashtra, who, however, have an opportunity to participate in the ethanol supplies against the EoI expected to be floated by the OMCs in the latter part of March, 2015.