Agri Business

At 14.1 lt, sugar output trebles over last year

Our Bureau New Delhi | Updated on November 17, 2020 Published on November 17, 2020

Industry sees another surplus year; awaiting policy decisions on exports, buffer stock

Sugar production in the current season was off to a good start with a production of 14.1 lakh tonnes (lt) till November 15, as compared to 4.84 lt produced in the same period last year, an Indian Sugar Mills Association (ISMA) statement said on Tuesday.

The higher production is mainly due to an increase in numbers of sugar mills crushing sugarcane at present. As compared to 127 mills during the corresponding period last year, 274 mills have commenced operations already this year.

Mills in Maharashtra, most of which commenced crushing on time as compared to last year, have so far produced 5.65 lt of sugar, while their counterparts in Uttar Pradesh produced 3.85 lt till date. In Karnataka, where 49 mills began crushing already, 3.4 lt of sugar was produced as compared to 1.43 lt same period last year, ISMA said.

Gujarat mills, 14 in number, produced 80,000 tonnes while all other sugar-producing States put together produced 40,000 tonnes of sugar till date.

Glut year

India is headed for yet another year of sugar surplus with there was an opening stock of 106.4 lt and an estimated production of 310 lt this year.

According to ISMA, there is a need for exporting 60-70 lt of sugar in the current season and policy decisions on export subsidy and creation of buffer stock are still awaited.

During the current season 2019-20 (Dec-Nov), ethanol supplied for fuel blending, as on November 9, was 160.23 crore litre, which is equivalent to a blend of 5 per cent. For next season, oil marketing companies have allocated 262 crore litres of ethanol as against offers received for 322.5 crore litres. Total ethanol requirement estimated as per tenders floated by OMCs is 475.64 crore litres, sufficient for a blend of 7-8 per cent.

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Published on November 17, 2020
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