Gross sugar output may fall 10 pc to 330.5 lakh tonnes in 2023-24 marketing year ending Sep: ISMA
New Delhi: India’s gross sugar production, without any diversion for ethanol, is estimated to decline 10 per cent to 330.5 lakh tonnes in the current marketing year ending September on likely lower output in Maharashtra and Karnataka, according to industry body ISMA. Indian Sugar Mills’ Association (ISMA) on Wednesday released its second advance estimates of sugar production for the 2023-24 marketing year (October-September).
The industry body has projected gross estimated sugar production around 330.5 lakh tonnes in 2023-24 as against 366.2 lakh tonnes in the previous year.
The gross production in Maharashtra is estimated to fall to 99.9 lakh tonnes from 118.5 lakh tonnes, while the production in Karnataka may dip to 49.7 lakh tonnes from 65.8 lakh tonnes.
In Uttar Pradesh, the gross output is seen increasing marginally to 119.9 lakh tonnes from 118.9 lakh tonnes during the period under review.
“The government has so far allowed sugar diversion of only 17 lakh tonnes for production of ethanol via sugarcane juice/B-heavy molasses for 2023-24. This would mean net sugar production could be around 313.5 lakh tonnes,” ISMA said in a statement.
The net sugar production stood at 328.2 lakh tonnes during 2022-23 marketing year with a diversion of 38 lakh tonnes of sweetener for ethanol-making from sugarcane juice and B-heavy molasses.
Due to less diversion allowed so far by the government, the net sugar production is likely to fall by 4.5 per cent.
Considering an opening stock of about 56 lakh tonnes on October 1, 2023, domestic consumption of 285 lakh tonnes and the estimated net production of 313.5 lakh tonnes, ISMA said the closing stocks would be comfortable around 84.5 lakh tonnes as on September 30, 2024.
“We believe that the government may now easily allow around 18 lakh tonnes of additional sugar diversion for production of ethanol in the current ESY(Ethanol Supply Year). Even then, closing stock will be sufficient enough to cater around three months into the next season,” the association said.
Meanwhile, ISMA said 187.2 lakh tonnes of sugar has been produced during the October-January period of 2023-24 marketing year as against around 195 lakh tonnes in the corresponding period of the previous year.
Source Link: https://economictimes.indiatimes.com/news/economy/agriculture/gross-sugar-output-may-fall-10-pc-to-330-5-lakh-tonnes-in-2023-24-marketing-year-ending-sep-isma/articleshow/107296998.cms?from=mdr
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