Likely dip in sugar availability for consumption due to diversion for ethanol production
India’s sugar production is expected to decline this season (November 2024 to March 2025) due to increased diversion of sugarcane juice for ethanol production. The National Federation of Cooperative Sugar Factories estimates a 12.23% dip compared to last season. Maharashtra, the largest sugar-producing state, is projected to produce 87 lakh tons, down from 110.2 lakh tons last year.
Kolhapur: National Federation of Cooperative Sugar Factories has estimated a dip in sugar availability this season (Nov 2024 to March 2025) across the country as more cane juice is likely to be diverted for ethanol production.A total of 16.80 lakh tons of sugar have been produced in a month till Dec 15. In the last season of 2023-24, the state’s mills produced 110.20 lakh tons of sugar, which, according to the federation, is going to dip to 87 lakh tons. Across India, there will be a dip of around 12.23% in sugar production compared to last season as most of the cane juice will be diverted for ethanol production.Experts said that the area under new plantation has reduced by 10-15% this year, as there were rains in some parts, owing to which sugar production will be less.
According to the Indian Sugar and Bio Energy Manufacturers Association, around 40 lakh tons of sugar are likely to be diverted for ethanol production. It was 21.5 lakh tons last year. More diversion for ethanol is expected due to increased potential of distilleries and expected hike in ethanol procurement prices.”The sugar recovery rate is less compared to last year. The rain has caused damage to crops in several parts of sugar cane-producing districts last month. It has impacted the yield of sugar cane crops. Moreover, there was a dip in new plantations. At present, it is premature to predict that there will be a significant drop in sugar production from current output figures, as in states like Maharashtra many mills have started operation at full capacity only in the last two weeks,” said Vijay Autade, a sugar industry expert based in Kolhapur.
Uttar Pradesh, where the crushing season started earlier in mid-October, has produced 22.65 lakh tons of sugar so far, while Karnataka, the third-largest producer, has produced 13.50 lakh tons of sugar so far. Maharashtra produced the highest, 110.20 lakh tons, last season. In Maharashtra, the average sugar recovery rate is 8.11%. The sugar recovery rate is sugar produced after crushing one ton of sugar cane. If the sugar produced is 100 kg after crushing one ton of sugarcane, then the crushing is 10%.Kolhapur district has a current sugar recovery rate of 9.53%. Kolhapur and Pune divisions account for half of the sugar produced in the state as of now. There are 183 sugar mills carrying out crushing in Maharashtra
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Source : Times Of India