The Hindu Business Line : Maharashtra sugar output to be 70 l tonnes

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New Delhi Jan. 29 Despite lower recovery levels, mills in Maharashtra are likely to still end up producing over 70 lakh tonnes (lt) of sugar during the current 2006-07 season (October-September).

"There is no change to our earlier estimate (of 70 lt plus)," said Mr Prakash Naiknavare, Managing Director, Maharashtra State Cooperative Sugar Factories' Federation.

As on Monday, the mills have cumulatively crushed 400 lt of cane and produced 44 lt of sugar at an average 11 per cent recovery. During the same period of 2005-06, they crushed 285 lt and produced 31.5 lt at 11.05 per cent recovery.

"The recovery is slightly lower as we had an extended monsoon and lack of sunshine during September, which affected sugar formation in the cane. But this will be made up because the peak recovery period is from mid-December to mid-February. And this time, since we started really crushing only from November 1 (15 days late), the peak recovery will continue till end-February," Mr Naiknavare told Business Line.

Output may go up

Moreover, while production in 2006-07 will cross a record 70 lt, it will be even more in 2007-08. Farmers in Maharashtra normally plant their 15-month crop from April to end-February. "We see planting of cane this time to touch 10 lakh hectares (against last year's 9.17 lakh hectares). This crop will be available for crushing from October 2007. Based on acreages so far, sugar output in the coming season could be in the 80-lt range," he added.

Glut situation

Keeping in view the prospects of a sugar glut — made worse by falling molasses and baggase prices — the federation is calling an emergency meeting of the chairmen of leading mills and experts in the State on February 7. "We will deliberate on these issues and work out a long-term plan to address the situation," he said.

Eyeing exports

Mills in Maharashtra are now getting Rs 1,330-1,350 per quintal on sugar, which is a drop of over Rs 400 per quintal since July, when the Centre imposed a ban on exports.

"Now that the ban has been lifted, we are looking at the export option, as the net realisations there will be higher than the $300-per tonne on domestic sales.

"A couple of our mills (Purna SSK at Parbhani and Malegaon SSK) have already contracted 5,000 tonnes each at $330-350 per tonne free-on-board," Mr Naiknavare said.