MUMBAI (Commoditiescontrol) - Sugar production in the country dropped more than 18 percent to 162.45 lakh tonnes as on February 28, 2017 of the current season started from October 1, 2016, said Indian Sugar Mills Association in press release on Thursday.
The country has produced 199.43 lakh tonnes of sugar corresponding period previous year. The drop in production was mainly attributed to poor sugarcane production.
Around 257 sugar mills were operating in sugar production up to February-end of the current season against 390 mills same period a year ago.
Sugar production in Uttar Pradesh rose 17 percent to 62.46 lakh tonnes versus 53.51 lakh tonnes. Around 17 mills are still continuing their operations compared with 102 sugar mills were in operation last year.
Out of 153 sugar mills which had started crushing this season in Maharashtra, 136 mills have stopped crushing and 17 are still working. Till 28th February 2017, mills have produced 41.15 lac tons of sugar, as compared to 70.58 lac tons produced last year on the corresponding period. In 2015-16 SS, 102 mills were in operation as on 28th February 2016.
Out of 153 sugar mills which had started crushing this season in Maharashtra, 136 mills have stopped crushing and 17 are still working. Mills have produced 41.15 lakh tonnes of sugar, as compared to 70.58 lakh tonnes last year. In 2015-16, 102 mills were in operation as on 28th February 2016.
The drought in Southern and Western part of the country during the last two years has majorly impacted sugarcane production, including yields per hectare, in these region. This has been the major contributor towards substantially lower sugar production in Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana. Gujarat also seems to have been affected, though to a lower extent, as compared to the other States in this region.
Lower sugarcane availability has, therefore, resulted in earlier closure of sugar mills and lower sugar production as compared to last year and as compared to what was generally estimated to by all stakeholders.
Sugar sales by the mills in Maharashtra, Uttar Pradesh and Tamil Nadu have been similar to that of last year, in the first 4 months of the season, from October to January 2017. However, the sugar sales have been lower from the mills in States like Karnataka, Andhra Pradesh & Telangana mainly because of lower sugar availability therein. In the other parts of the country, the sugar sales have been similar to what they were last year in the first 4 months.
Sugar stocks held by the mills in North India, especially Uttar Pradesh is significantly higher to last year on January 31 mainly because of higher sugar production therein as compared to last year.
Considering that 156 sugar mills are still operating in the Northern part of the country and are likely to continue till April 2017, it is generally expected that substantially higher quantity of sugar will further be produced from this region in comparison to the drought affected States in West and Southern parts of the country. This will add to the stocks held by mills in North India.
(By Commoditiescontrol Bureau; +91-22-40015533)