Agri Business

Sugar mills’ production falls 54% to 18.85 lakh tonnes till Nov 30

Our Bureau New Delhi | Updated on December 03, 2019 Published on December 03, 2019

Maharashtra's cane production fell to 67,000 tonne during October and November 2019. - File Photo   -  Reuters

279 sugar mills across the country are crushing sugarcane as against 418 mills in the same period last year

Sugar mills in India produced 18.85 lakh tonnes (LT) of sugar till November 30 in sugar season (October to September) 2019-20, 54 per cent lower than the 40.69 LT produced during the corresponding period in the previous year, said an Indian Sugar Mills Association (ISMA) press release on Tuesday.

The shortfall is mainly on account of the delayed commencement of crushing in Maharashtra, the second largest sugar producing State. Sugar mills there started crushing only on November 22 due to excess rainfall.

Currently, 279 sugar mills across the country are crushing sugarcane, against 418 mills in the same period last year.

In Uttar Pradesh, 111 sugar mills were crushing sugarcane as on November 30, producing 10.81 LT of sugar. In comparison, 105 mills had produced 9.14 LT sugar in the same period last year in UP.

In Maharashtra, only 43 sugar mills produced 67,000 tonnes of sugar till November, against 175 mills producing 18.89 LT in the previous-year period.

As many as 63 mills that are in operation in Karnataka produced 5.21 LT of sugar; last year, the same number of mills produced 8.4 LT. Crushing operations were delayed in Gujarat, too. Fourteen mills which are in operation produced only 75,000 tonnes of sugar till November 30, against 2.05 LT in the previous year.

In rest of the States, a total of 1.41 LT of sugar were produced by 50 mills, against 2.21 LT by 60 mills last year, said the ISMA release.

Export contracts

Trade and market sources said about 15 LT of sugar has been contracted for exports, which includes contracts made with port-based refiners by sugar mills. The major export destinations are Iran, Sri Lanka, Afghanistan and African countries.

Ex-mill sugar prices in the northern States continue to remain at ₹3,250-3,300 per quintal for the last couple of months. In the western and southern States, it is hovering at ₹3,100-3,250 per quintal.

Per information available with the State governments, sugar mills owe farmers about ₹5,000 crore as on November 30 this season, compared to cane price arrears of ₹8,000 crore in the previous year period.

Currently, 279 sugar mills across the country are crushing sugarcane, against 418 mills in the same period last year, said ISMA

 

Published on December 03, 2019
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