PRESS RELEASE: SUGAR PRODUCTION UPTO 29^TH FEBRUARY, 2016

·                  From the beginning of the season, from 1^st October 2015 to 29^th February 2016, sugar mills have produced 199.47 lac tons of sugar, as compared to 195.58 lac tons produced during the same period in 2014-15 SS.  

·                  During the current 2015-16 SS, out of 513 sugar mills which started operations, 107 have shut their operations by 29^thFebruary 2016.  Last year, out of 517 sugar mills which were in operation between 1^st October and 28^th Feb. 2015, 13 had shut their operations.

·                  In Maharashtra, 177 sugar mills have produced 70.40 lac tons of sugar till the end of February 2016, as against 74.78 lac tons produced in 2014-15 SS on the corresponding date.  71 sugar mills in the State have stopped their crushing operations by 29^thFebruary 2016 due to non-availability of cane in their respective areas.  About 60 of these 71 mills, which have closed their operations for the season, are from rain deficit areas of Maharashtra viz. Marathwada areas and Sholapur.  Last year, only 3 three sugar mills had stopped crushing by 28^th February 2015.

·                  As regards Uttar Pradesh, 116 sugar mills had started operations during 2015-16 SS, of which 13 have closed.  Till 29^thFebruary 2016, sugar mills have produced 53.65 lac tons of sugar, as against 49.59 lac tons produced during the same period in 2014-15 SS.  Last year, of the 118 sugar mills which operated, 6 mills had shut their operations by 28^th February 2015.

·                  64 sugar mills which were in operation in Karnataka have produced 36.07 lac tons of sugar upto 29^th February 2016.  This is 2.96 lac tons higher than what they produced upto 28^th February 2015 in the last 2014-15 SS.  16 sugar mills have shut their operations by 29^th February 2016, as compared to 3 sugar mills which had stopped crushing on 28^th February 2015.

·                  Andhra Pradesh and Telangana sugar mills have produced 6.70 lac tons of sugar upto 29^th February 2016.  Last year, during the same period, there was a production 7.29 lac ton during the corresponding date.  As on 29^th February, 2016, out of 26 sugar mills of Andhra Pradesh and Telangana which operated during the current 2015-16 SS, 1 sugar mill has closed its crushing operations.

·                  In Tamil Nadu, 38 sugar mills have produced 5.30 lac tons of sugar as on 29^th February, 2016 this season, as compared to 4.78 lac tons of sugar produced by 43 sugar mills in 2014-15 SS till 28^th February 2015 last year. 

·                  As regards Gujarat, 9.20 lac tons of sugar have been produced by 20 sugar mills as on 29^th February, 2016.  Last year, these mills had produced 8.47 lac tons of sugar on the corresponding date.  During the current 2015-16 SS, out of 20 mills operated, 2 sugar mills have stopped crushing.

·                  In Bihar, 11 sugar mills have produced 4.50 lac tons of sugar till 29^th February 2016, as compared to 4.71 lac tons produced during the same period last year.   This year, 4 sugar mills have stopped crushing, as against 2 on the corresponding date last year.

·                  In case of other States viz. Uttarakhand, Punjab, Haryana and Madhya Pradesh, sugar production till 29^th February 2016 was 2.05 lac tons, 4.25 lac tons, 3.60 lac tons and 3.35 lac tons, respectively.  Sugar production during the current season till 29^thFebruary 2016 was slightly higher than last year.

·                  As per information provided by sugar mills, contracts for exports have been made for a quantity of about 12.5 lac tons, of which 10 lac tons have already been moved from factories for exports. 

·                  Government of India had a meeting with Chief Minister as well as the Cooperation Minister of Maharashtra and briefed them about the lackadaisical performance of fufilment of export quota by Maharashtra mills.  Subsequently, the State Government had a meeting with the sugar mills of the State wherein it was decided that the mills who export 12% of the current season’s production will be entitled to exemption of State purchase tax on sugarcane.  In Maharashtra, sugar mills are required to pay purchase tax @ 3% on FRP, which works out to around Rs. 9 per quintal of sugarcane.  Notification to this effect is however, awaited. It is, therefore, expected that the mills will now be more willing to fulfill their export quotas.  Meanwhile, out of 11.15 lac tons of export quota fixed by the Government of India, the mills in Maharashtra have reportedly contracted for around 4 lac tons of exports.