PRESS RELEASE – SUGAR PRODUCTION AS ON 28TH FEB’2022 AND REVIEW OF PRODUCTION ESTIMATES FOR 2021-22 SS
· During 2021-22 SS, from 1st October 2021 to 28th February 2022, 516 sugar mills had started operations (as against 503 sugar mills which had operated last year till 28th February,2021). 27 sugar mills across the country have ended their operations by 28th February 2022. Last year, 99 sugar mills had closed their crushing operations as on 28th February, 2021.
· These 516 sugar mills in the country have together produced 252.87 lac tons of sugar till 28th February 2022, as compared to 234.83 lac tons produced by 503 mills last season till 28th February 2021.
· In Maharashtra, sugar production till 28th February 2022 was 97.15 lac tons, compared with 84.85 lac tons produced last year same period. In the current 2021-22 SS, all the 197 sugar mills which have started are still operating. Last year in the same period, 13 sugar mills had ended their operations for the season 2020-21. In other words, as on 28th February 2022, 197 sugar mills were crushing as against 176 sugar mills last year on 28th February 2021.
· In U.P. 112 sugar mills are in operation currently, while 8 mills have stopped their crushing operations, most of them in Eastern U.P. region. These mills in the State have produced 68.64 lac tons of sugar till 28th February 2022, compared with 74.20 lac tons produced by similar number mills as on 28thFebruary, 2021. However, last year 11 mills had completed their crushing operations as on corresponding date.
· In case of Karnataka, till 28th February 2022, 72 sugar mills operated in the current season and have produced 50.84 lac tons, as compared to 40.83 lac tons produced by 66 sugar mills which operated last year, till 28th February 2021. During the current season, out of 72 mills which operated, 7 mills have ended their crushing. Last year in the same period, out of 66 sugar mills which operated, 52 sugar mills had ended their crushing operations by 28th Feb. 2021.
· In Gujarat, 15 mills are currently in operation and have produced 7.93 lac tons of sugar till 28th February 2022. Last year, similar number of sugar mills operated while one mill had closed its operations on the corresponding date and had produced 7.49 lac tons of sugar till 28th February 2021.
· In case of Tamil Nadu, 26 sugar mills commenced their crushing operations so far for 2021-22 SS and have produced 4.53 lac tons of sugar, as compared to 3.22 lac tons produced by 26 sugar mills in 2020-21 SS on the corresponding date.
· The remaining States of Andhra Pradesh & Telangana, Bihar, Uttarakhand, Punjab, Haryana, Madhya Pradesh & Chhattisgarh, Rajasthan and Odisha have collectively produced 23.78 lac tons of sugar till 28th February, 2022.
· 1 mill in AP, 1 mill in Telangana, 5 mills in Bihar, 4 mills in Punjab, & 1 mill in Chhattisgarh have ended their crushing operations so far in the current season.
· The Committee of ISMA, having sugar producers from across the country, in its meeting held on 4thMarch, 2022 noted the sugar production upto 28th February, 2022, and after discussing the sugar recovery, cane yield, remaining harvestable area / sugarcane and expected dates of closure of factories in different States, agreed that the sugarcane availability in Maharashtra and Karnataka is higher than what was expected earlier.
· Accordingly, ISMA has revised its sugar production estimate for 2021-22 SS for Maharashtra as 126 lac tons (after diversion into ethanol), against 117 lac tons estimated in its 2nd advance estimates. Similarly, Karnataka is now expected to produce 55 lac tons (after diversion into ethanol), as against 45.21 lac tons estimated earlier. However, not much change is expected in other States including U.P., and they are expected to produce 152 lac tons of sugar (after diversion into ethanol).
· All India sugar production in 2021-22 SS is therefore expected as 333 lac tons, considering diversion of 34 lac tons of sugar equivalent into ethanol.
· On the export front, it is reported that over 60 lac tons of export contracts have already been entered into so far. Out of that, about 42 lac tons is estimated to have been physically exported till end of February, 2022. Another 12-13 lakh tons of sugar are expected to be exported in March 2022, taking the total to 54-55 lakh tons of physical exports by then. This was also discussed in the meeting of ISMA. Considering recent ISO report indicating a global deficit of around 1.93 million tons for 2021-22 SS (October – September) and interest of exporters to buy more Indian sugar, ISMA members agreed that sugar exports will be higher than previously expected, and India will export 75 lac tons of sugar in the current season, as against 60 lac tons estimated earlier.
· As per reports from sugar mills and estimations made by ISMA, sugar sales by end of January 2022 has been estimated at 91.23 lakh tons, as against 87.69 lakh tons in the corresponding period last year, which is higher by 3.5 lakh tons. Further domestic sugar sales quota released by the Government upto March 2022 is higher by 6 lakh tons as against corresponding period last year. Considering the above, ISMA estimates domestic sugar consumption in the current season to be at 272 lakh tons.
· Considering an opening stock of about 82 lac tons as on 1st October 2021, domestic consumption of 272 lac tons, sugar exports of 75 lac tons and the estimated production of 333 lac tons, the closing stock as on 30th September, 2022 is expected to be at around 68 lac tons.