India’s Sugar Production Sours, Yet Ethanol Ambitions Rise
India faces a 7% dip in sugar production at 14.87 million tonnes until January 15, triggered by lower sugarcane output. Government initiatives, such as diverting cane from ethanol to sugar, contribute to the decline, though Maharashtra and Karnataka show unexpected sugar production spikes. As the nation navigates this sweet dilemma, a call to sustain the ethanol program emerges to counterbalance global trends.
Highlights
Sugar Production Decline: India’s sugar production for the current season (October 1, 2023, to January 15, 2024) has decreased by 7% to 14.87 million tonnes compared to the same period last year.
Factors Contributing to Decrease: The lower sugar production is attributed to a decrease in sugarcane output, as estimated by the Agriculture Ministry. Initiatives have been taken by the government to increase sugarcane availability for sugar production.
Government Initiatives: The government has implemented measures such as banning sugarcane juice for ethanol and increasing ethanol rates from C-heavy molasses. These actions have led to a shift in cane diversion towards sugar production, resulting in a 9% fall in sugar production until December 15.
Regional Variances: While there is an overall decline, Ravi Gupta from the West Indian Sugar Mills Association suggests that sugar production is higher than estimated in Maharashtra and Karnataka. He advocates for maintaining a robust ethanol program to prevent a sugar surplus.
Operational Sugar Mills: Currently, 509 sugar factories are operational, compared to 511 by December 31. Some factories in Karnataka closed early, and others in Maharashtra started operations late in the season.
Crushing Statistics: From October 1 to January 15, sugar mills have crushed 156.3 million tonnes of sugarcane, producing 14.87 million tonnes of sugar with an average recovery rate of 9.51%. In the same period last season, 519 mills were operational, crushing 168.15 million tonnes of sugarcane to produce 16 million tonnes of sugar with a recovery rate of 9.52%.
Expectations for the Season: Jaiprakash Dandegaonkar, President of NFCSF, anticipates that the total sugar production for the season will be at least 30.55 million tonnes.
State-wise Output: Uttar Pradesh, Maharashtra, and Karnataka are the leading sugar-producing states. Uttar Pradesh is expected to produce 11.5 million tonnes, Maharashtra 9 million tonnes, and Karnataka 4.2 million tonnes by the end of the current sugar season.
Ethanol Program Advocacy: Amid Brazil raising its sugar production, there is a call to continue India’s ethanol program to balance sugar production.
Operational Challenges: Some sugar mills in Karnataka closed early, and others in Maharashtra started operations late, affecting overall operational statistics.
Conclusion
India’s sugar industry encounters challenges with a notable production drop, urging strategic interventions. While regional variations bring unexpected surges, a pivotal focus on sustaining the ethanol initiative emerges. The nation stands at the crossroads, balancing sugar and ethanol priorities to navigate the complexities of global market shifts and ensure a resilient future for its sugar industry.
