MUMBAI (Commoditiescontrol) - Indian Sugar Mills Association (ISMA) in second advance estimate has revised country's sugar production lower at 213 lakh tonnes for sugar season Oct-Sept (2016-17) from 234 lakh tonnes estimated earlier in September 2016 due to lower yield and slightly lower sugar recoveries in parts of Karnataka and Maharashtra.
ISMA has estimated sugar production in the country as on January 15, of the current sugar season Oct-Sept (2016-17) dropped 5 percent at 104.80 lakh tonnes against same period a year ago.
The opening stocks of sugar as on October 1, 2016 for the current sugar season, was 77.5 lakh tonnes. These figures have been collected from reports and statements submitted by each sugar mill to the Government, as per physical stocks in their godowns.
Considering 213 lac tons of sugar production as per 2nd advance estimates of ISMA, sugar despatches of 242 lakh tonnes in the whole 2016-17 and a high opening balance of 77.5 lakh tonnes for the season, the closing stock of sugar as on September 30, 2017 will be 48.5 lakh tonnes, which is equivalent to at least 2½ months of sugar consumption.
The industry body "Considering that some sugar mills have closed their operations in the drought affected areas mostly in Maharashtra and Karnataka and field reports that sugarcane availability in these two States is lower than earlier expectations, as well as reports of lower yields per hectares of sugarcane and slightly lower sugar recoveries in parts of Maharashtra and Karnataka."
The largest sugar producing State this year, namely, Uttar Pradesh is however, reporting better sugarcane crush and, therefore, may give marginally higher production as compared to the earlier estimates. The area under high yielding and high sugar recovery variety Co0238 is significantly more than last year because of which the production in U.P. is expected to be higher than last year, said ISMA.
The sugar sales/despatches during October – December 2016, that is, in the first quarter of the current season is significantly lower to that of last year by 5.5 lakh tonnes, i.e. down by 8.5 percent.
In the last sugar season 2015-16, total despatches by the mills were at 248.5 lakh tonnes and as per the field reports, it is certain that current 2016-17 will be lower than that of last season.
The sales in January 2017 also seems to be lower as compared to last year, when sugar mills had sold 25 lakh tonnes. Assuming that in the balance 8 months of the current season i.e. from February to September 2017, there is similar sugar sales in comparison to last year and assuming that the sugar sales/despatches are similar to last year, the sugar sales in the current season up to September 2017, will be around 242 lakh tonnes.
(By Commoditiescontrol Bureau; +91-22-40015533)
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