Sugar mills in the country have so far produced 258 lakh tonnes (lt) of sugar, nearly 20 per cent lower than the 321.71 lt produced till April 30 last year, the Indian Sugar Mills Association (ISMA) said on Friday.

The trade body also said there is an increase in sugar offtake in the last week of April with traders coming forward to refill the pipeline which is almost dry currently.

Surge in demand expected

“It is generally expected that sugar demand will increase as soon as the lockdown is withdrawn, especially because of demand from the traders to refill the pipeline, which is almost dry, and also because of the rise in consumption coming up due to summer demand for beverages, ice creams, juices, etc,” ISMA said.

On domestic sales, ISMA said mills sold 10 lt more sugar during the first five months of sugar season (October to September).

Mills in Uttar Pradesh produced 116.52 lt of sugar till April 30 as against 112.80 lt in the same period last year, while sugar production in Maharashtra was 60.67 lt (107.15 lt). Mills in Karnataka produced 33.82 lt of sugar, which is nearly 5 lt lower than last year. Cumulative sugar production from other States was at 47 lt.

Across the country, 112 mills are still crushing sugarcane, ISMA said. It said the mills have so far shipped 35 lt of sugar. Besides, contracts for sugar exports are being signed for various destinations, with major quantities being signed for shipments to Indonesia and Iran. Similarly, the government has re-allocated export quota for 3.53 lt – surrendered by some mills – to other mills.

According to ISMA, the government has allowed extension of time to sign contracts for exports and despatches up to June 30, but has said that thereafter MAEQ (Maximum Admissible Export Quantity) would be deducted from mills that do not export, and will also penalise them by making them ineligible for buffer subsidy.

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