The country’s net sugar production without diversion for ethanol is higher by 58.07 lakh tonnes (lt) or 18 per cent compared with last year, the Indian Sugar Mills Association (ISMA) has said.

However, in terms of actual sugar produced, after considering diversion for production of ethanol, sugar production is higher by 44.06 lt. A higher-than-estimated diversion of about 14 lt sugar has taken place this season to September into ethanol. 

In the current season, 521 mills operated against 506 mills last season. As of May 15, 2022, about 405 mills had closed their crushing operations, while 116 sugar mills are still operating in the country.

Most mills to shut

According to ISMA statement, most of the operating factories are expected to close by this month end However, a few mills may operate till first fortnight of June.

Karnataka and Tamil Nadu have a special season, which commences in June/July and runs up to September. Last year, both these States collectively produced 4.36 lt of sugar in the special season.

“As per port information and market reports, over 85 lt of contracts for export of sugar have already been entered into so far. Of this, around 71 lt have been physically exported out of the country till end of April. Compared with this, 43.19 lt were exported during the corresponding period a year ago. Further, it is also reported that another about 8-10 lt of sugar is in pipeline to be physically exported in May 2022. ISMA expects over 90 lt of export in the current season against 71.91 lt exported in last season,” the statement said.

As per information furnished by mills and estimations made by ISMA, total sales in April was estimated at 23.91 lt. Total sales in the current season up to April 2022 are estimated at 160.05 lt against 152.61 lt during the same period a year ago. This would mean that sales in the current year up to April are higher by about 7.5 lt or about 5 per cent higher than the corresponding period last year. 

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