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India’s sugar production has declined by 11 per cent to 74.05 lakh tonnes (lt) during October 1-December 15 period of the current season (october 2023-September 2024) from 82.95 lt a year ago, as drought in Maharashtra and Karnataka has lowered the output in those States, according to industry data.
Releasing the fortnightly update, the Indian Sugar Mills Association (ISMA) said despite the number of operating factories remaining unchanged at 497 (year-on-year), the sugar production in the ongoing season has declined. Crushing may continue until May in Uttar Pradesh and some other States while it may end up earlier in Maharashtra and Karnataka.
ISMA output estimate
This year sugar factories in Maharashtra and Karnataka started crushing sugarcane 10-15 days late compared to the last year, ISMA said in a statement pointing to the lower output.
In Uttar Pradesh, sugar production has increased to 22.11 lt till December 15 from 20.26 lt in the year-ago period. However, the output has declined in Maharashtra to 24.45 lt from 33.02 lt and in Karnataka to 16.95 lt from 19.20 lt, ISMA said. Uttar Pradesh, Maharashtra and Karnataka are the top three producers, accounting for over 80 per cent of the country’s total sugar production.
Last week, ISMA had projected that the total sugar production in the entire season this year to be 325 lt before diversion for ethanol. Along with the opening stock as of October 1 from the previous season sugar at 56 lt and an estimated demand of 285 lt, the availability will be enough to allow more than 17 lt agreed by the government for diversion to ethanol.
Though sugar export has not been banned, the government is unlikely to issue any permits this year without which the commodity cannot be shipped. India exported 64 lt of sugar in the 2022-23.
NFCSF data on recovery
Meanwhile, the sugar recoveries in many states including Maharashtra and Karnataka has declined this year, according to National Federation of Cooperative Sugar Factories (NFCSF). But the recovery in Uttar Pradesh is better at 9.3 per cent against 8.85 per cent year-ago. Recovery is the amount of sugar extracted out of cane crushed. For instance, if 9 kg sugar is produced after crushing one quintal of sugarcane, the recovery is 9 per cent.
NFCSF data also show that the recovery in Maharashtra has dipped to 8.40 per cent until December 15 from 9.10 per cent year-ago and in Karnataka to 8.30 per cent from 8.50 per cent.
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