India’s sugar mills have produced 257.6 lakh tonnes (lt) of sugar in the first five months of the current season starting October 2022 against 253 lt in the same period a year ago, up by 1.8 per cent, according to data released by the Indian Sugar Mills Association (ISMA). The estimated pan-India diversion (in terms of sugar) towards the production of ethanol was 28.5 lt between October 1 and February 28 of the current season against 21.9 lt a year ago, up by over 30 per cent.

“While the top three States — Maharashtra, Uttar Pradesh and Karnataka — together have 45 per cent share in the sugar produced so far, their combined share towards diversion for ethanol is 96 per cent. This needs some attention at policy level to encourage other States also to divert cane towards ethanol,” an industry expert said.

As the crushing season continues, as many as 467 sugar mills are still in operation this season, whereas 484 factories were operational until February last year.

Out of the total 528 operational sugar factories in India this season, 38 per cent of them (198 mills) are in Maharashtra and together they have produced 95.2 lt of sugar so far, down from 97.2 lt in the year-ago period due to higher volume of sugarcane getting diverted for ethanol. The estimated diversion (in terms of sugar) towards the production of ethanol in the State was 9 lt against 7.2 lt a year ago, up by 25 per cent.

Maharashtra output dips

Due to the early closure of operations by more mills in Maharashtra, the overall production is also seen to drop this year. The All-India Sugar Traders Association (AISTA) has lowered its estimates for sugar production in Maharashtra, though it will remain the top producer in the country at 113 lt from the earlier projection of 124 lt. Last year, the State produced a record 137 lt.

AISTA said a good number of sugar factories in Maharashtra have started closing down or have already pulled the shutters down. Some are able to operate in only one or two shifts, a clear sign of the season tapering off. According to ISMA, as many as 180 mills are operational now, as against 197 that were crushing a year ago in Maharashtra.

Uttar Pradesh, which has 113 mills in operation now against 112 factories year-ago, has produced 70 lt of sugar, up from 68.6 lt year-ago. The estimated diversion (in terms of sugar) towards production of ethanol in UP was 9.7 lt as against 7.7 lt year-ago, up by 26 per cent.

As many as 52 are operational in Karnataka as of February 28, against 60 a year ago. The total sugar production in the third largest State has reached 51.2 lt up from 50.8 lt, ISMA data showed. Ethanol production in Karnataka has seen a 40 per cent surge as 8.8 lt has been diverted towards the biofuel against 6.3 lt year-ago.

Among other states, Gujarat has produced 8.23 lt against 7.93 lt while Haryana’s sugar production reached 4.41 lt from 4.2 lt, Punjab 4.83 lt from 4.3 lt and Bihar 5.4 from 4.29 lt. The sugar production in Tamil Nadu is at 6.63 lt against 4.71 lt year-ago.

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