Erratic rains, warm winter hit sugar production
Due to erratic monsoon rains and warmer winter temperatures, India’s sugar production is expected to decrease by over 12% this year. Key states like Uttar Pradesh, Maharashtra, and Karnataka have been hit by pests, further reducing yields. As a result, sugar prices are likely to rise. Industry estimates suggest 280 lakh tonnes of production for the 2024-25 season, down from 319 lakh tonnes last year. The current sugar production stands at 61.39 lakh tonnes as of December 15, 2024, reflecting a decline of over 13 lakh tonnes compared to last year.
NEW DELHI: With erratic monsoon rains and warmer winter temperatures negatively affecting sugar production, sugar prices are expected to rise in the coming months.
This year, sugar production in the country is projected to decrease by over 12 per cent, primarily due to unpredictable monsoon rainfall and warmer winters, which have resulted in an increase in pest attacks in major sugar-producing regions. With lower sugar production, prices are likely to increase.
Industry estimates suggest that approximately 280 lakh tonnes (LT) of new sugar production is expected by the end of the season. This figure is estimated to be 39 LT lower than last year’s total production of 319 LT. More than 80 per cent of sugarcane production occurs in Uttar Pradesh, Maharashtra, and Karnataka, and erratic weather conditions have negatively affected these three key states.
In Uttar Pradesh, the estimated sugar production is 98 lakh tonnes (LT), compared to last year’s actual production of 103.65 LT. Similarly, Maharashtra’s estimated production stands at 87 LT, down from an actual production of 110.20 LT last year, while Karnataka is projected to produce 45 LT, compared to an actual production of 53 LT last season.
The extended monsoon rainfall in Maharashtra and Karnataka during September and October, combined with a warmer winter, has led to an increase in pest attacks such as Red Rot and Top Borers in sugarcane crops in Uttar Pradesh, impacting crop production,” said Prakash P. Naiknavare, Managing Director of India’s National Federation of Cooperative Sugar Factories Ltd.
As of December 15, 2024, sugar production for the current 2024-25 sugar season has reached 61.39 lakh tons (LT) with an average sugar recovery rate of 8.50 per cent. This is a decrease compared to last year’s production of 74.05 LT for the same date. Production is down by over 13 LT compared to this time last year.
Additionally, the number of operating factories has decreased to 477 this year, down from 496 factories that operated at the same point last year.
According to the Indian Sugar and Bio Energy Manufacturers Association (ISMA), sugar factories in Karnataka started their operations 7-12 days later than last year, while in Maharashtra, mills began 15-20 days late compared to last year.
Approximately 40 lakh tons of sugar will be diverted for ethanol production this year. Harshvardhan Patil, president of the NFCSF, stated that the current climatic conditions are better than those of the previous month, which will help narrow the production gap.
“Considering the present climate of severe cold and bright sunlight throughout the day, we expect approximately 280 LT of net new sugar production by the end of the season,” Patil said.
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Source : The New Indian Express
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