A major crisis has emerged in the country’s sugar industry. Due to an inadequate supply of sugarcane, 77 sugar mills have already stopped crushing by mid-February, and several others have issued closure notices. Many more mills are expected to halt operations by the end of February as sugarcane supply continues to dwindle.
Typically, sugar mills operate until March or April. However, this year, adverse weather conditions and crop diseases have severely impacted sugarcane production, leading to a significant shortage of raw material for sugar mills. As a result, India’s sugar production is expected to decline by approximately 15% compared to last year, reaching around 27 million tons.
Sharp Rise in Sugar Mill Closures
According to a report released by the National Federation of Cooperative Sugar Factories Ltd. (NFCSF) on February 15, a total of 77 sugar mills have ceased crushing operations in the 2024-25 sugar season so far, compared to just 28 mills during the same period last year.
Karnataka has been the worst affected, with 34 mills shutting down. Maharashtra follows closely, with 30 mills ceasing operations. Tamil Nadu (4), Uttar Pradesh (2), Telangana (2), Uttarakhand (2), and Haryana (1) have also seen mills shutting down.
As of February 15, 454 out of 531 sugar mills in the country are still operational. So far, 197.65 lakh tons of sugar have been produced, which is 12% lower than last year’s output for the same period. In the previous season, 505 mills were operational by this time, and 224.75 lakh tons of sugar had been produced.
More Sugar Mills Set to Close by February End
In Uttar Pradesh’s Bareilly district, four sugar mills (Bahedi, Faridpur, Nawabganj and Semikheda) have already issued closure notices due to sugarcane shortages and are expected to shut down by February 20. Similarly, the Bilaspur based Cooperative Sugar Mill in Rampur district is preparing to halt operations. Several mills in Western Uttar Pradesh are likely to shut down by the end of February as they struggle to procure sufficient sugarcane.
Drop in Sugar Recovery Rates
Due to poor-quality sugarcane, the sugar recovery rate has also declined significantly. Last year, the national average sugar recovery rate was 9.87% during this period. This year, it has dropped to 9.09%. Karnataka saw the steepest decline, with the recovery rate falling from 9.75% to 8.50%. In Uttar Pradesh, the recovery rate fell from 10.20% last year to 9.30% this year.
Impact of Weather and Crop Diseases
Uttar Pradesh, one of the largest sugarcane-producing states, has been severely impacted by crop diseases such as Red Rot and Top Borer, leading to widespread damage. Additionally, heavy rains and floods in some districts have further worsened the situation, reducing both sugarcane yield and recovery rates. As a result, sugar mills across the state are struggling to secure enough sugarcane to sustain operations.
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Source : Rural Voice
