Media Release : Revision of 2^nd advance estimate of sugar production 2017-18

• Considering the substantially higher sugarcane yields per hectare reported from the State of Maharashtra and North Karnataka, members of ISMA agreed that there is a need to review the second advance estimates of sugar production made on 18^th January 2018. 

• The yields recorded in Maharashtra and Karnataka are reportedly one of the highest ever noticed in the past from either of these States.

• In the last year when the sugar production fell to 203 lac tons for the whole country and 42 lac tons in Maharashtra and 21.6 lac tons in Karnataka due to drought therein, the yields from both of these two States were about 60 tons/ha.  However, the average yields in the current season from these two States reported to be around 100 tons/ha and 91 tons/ha, respectively.

• The sugar production upto 28^th February 2018 was 230.5 lac tons.  Considering that 479 sugar mills are still crushing and also taking into the account higher yields reported from above two States, ISMA has revised its estimates for the current season to 295 lac tons of sugar.  Out of this, U.P. is expected to produce 105.13 lac tons, Maharashtra to produce 101.3 lac tons and Karnataka 35.45 lac tons and the rest of the sugar production is expected to come from the other States.

• Accordingly, sugar production of 295 lac tons in the current season will be 45 lac tons higher than the 250 lac tons of estimated domestic consumption.  A part of this needs to beexported in the next 6 to 7 months within this sugar season itself, to reduce the burden of surplus sugar in the country.  This, in turn, will give extra cash flows to the sugar mills to ensure better payment to the farmers and reduction in the cane price arrears, which is accumulating very fast to uncomfortable levels.