Estimates for sugar production have been scaled down by the Indian Sugar Mills Association (ISMA) for the current 2013-14 season by five per cent to 23.8 million tonnes (mt). In September, ISMA had projected the output at 25 mt for the 2013-14 season to September.

In its latest projections – based on the January-end satellite imagery – ISMA attributed the decline in output to the loss of sugarcane crop in eastern Uttar Pradesh due to heavy rains among other reasons.

Also, the higher diversion of sugarcane to alternate sweeteners such as gur and khandsari in Uttar Pradesh due to the delayed start of crushing season has contributed to the lower production. Farmers had diverted substantial sugarcane to gur and khandsari units to make way for planting of wheat, a key winter crop in the region.

The projected decline in output may not have any significant impact on the domestic availability, although prices – that had touched a five-year lows in end January – have firmed up marginally in recent weeks. While the domestic consumption is pegged at 23.5 mt, the country had an opening stock of over 8 million tonnes at the beginning of the current sugar season in October.

Sugar production in UP is now projected at 6.6 mt, lower by 1.1 mt against the earlier estimate of 7.7 mt. In Maharashtra, the output is expected to be flat at 7.8 mt. In Karnataka, the output is likely to be marginally higher at 3.5 mt (3.4 mt), while in neighbouring Tamil Nadu the output is down at 1.5 mt (1.64 mt). In Gujarat and Andhra Pradesh, the sugar output is expected to be 1.17 mt and 0.95 mt respectively.

Related Topics
comment COMMENT NOW