Sugar production is expected to be 49 lakh tonnes less than the previous year
India’s sugar production is projected to reach 270 lakh tonnes, 49 lakh tonnes lower than last year. The sugar recovery rate has also dropped to 8.91%. Delayed crushing seasons in Maharashtra, Karnataka, and Gujarat, along with adverse weather, have impacted production. The government’s approval of sugar exports and increased ethanol prices may support the industry financially.
As the sugarcane crushing season nears its end, the prospect of sugar production remains bleak. Both total sugar production and the sugar recovery rate have been lower than last year. Experts attribute this to changing climatic conditions in sugarcane-producing regions, which have severely impacted production.
The national sugar production is now estimated to reach only 270 lakh tonnes by the end of the year, a decrease of 49 lakh tonnes compared to last year’s final sugar production of 319 lakh tonnes.
Moreover, the sugar recovery rate is also lower than last year. The average sugar recovery at the national level stands at 8.91 percent, which is 0.79 percent lower than the 9.70 percent recovery rate at this time last year.
According to the latest sugarcane crushing progress report, a total of 494 factories across the country have participated in the crushing season, 23 fewer than the 517 factories that operated last year. As of now, 1855 lakh tonnes (LT) of sugarcane have been crushed, which is 76 LT less than the 1931 lakh tonnes crushed by this time last year.
As a result, 165 LT of new sugar has been produced nationwide by January 31, 22 lakh tonnes less than the 187 lakh tonnes produced by the same date last year.
This year’s 2024-25 sugar season started late due to both political and climatic reasons. Due to election and polling dates, the Maharashtra state government delayed the start of the sugarcane crushing season until after November 15. The season in Karnataka and Gujarat also began later than usual. In the northern states, the crushing season only fully kicked off after mid-November, following the retreat of the monsoon rains and the Diwali festival.
“This year’s season is facing unusual circumstances due to the changing weather cycle,” said Harshvardhan Patil, President of the National Federation of Cooperative Sugar Factories (NFCSF).
“After the drought-like conditions earlier, excessive rain followed, and in some areas, the standing sugarcane has flowered in parts of Maharashtra and Karnataka. As a result, the growth of sugarcane has slowed, and its sugar content has decreased. This is expected to cause the crushing season in these areas to end earlier than anticipated,” Patil added.
Consequently, there are signs of a reduction in the initially expected sugar production by the end of the season.
State-wise production data shows that Uttar Pradesh has produced 93 LT, down from 98 LT last year. Maharashtra has produced 86 LT so far, 1 LT less than last year. Karnataka has produced 41 LT, which is 5 LT lower than last year, while other states have contributed 50 LT, which is either higher or the same as last year.
However, the government has allowed the export of 10 LT of sugar and increased the price of ethanol, which is expected to have a favorable impact on the sugar industry.
“It will help factories settle their outstanding bills with sugarcane growers and ensure that other ancillary expenses can be paid on time,” said Patil.
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Source : The New Indian Express