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Sugar production in the current 2014-15 sugar season till March 31 was up 13 per cent at 247.20 lakh tonnes over the corresponding period last year.
About 392 mills were still crushing sugarcane across the country against 316 in the corresponding period last year, according to the Indian Sugar Mills' Association.
In Maharashtra, sugar mills have produced 93.64 lakh tonnes of sugar till March 31 this year against 70.69 lakh tonnes in the corresponding period last season. About 142 sugar mills were still operational compared with 79 in the corresponding period previous year.
Similarly, mills in Uttar Pradesh have produced 63.60 lakh tonnes this year (59.16 lakh tonnes). About 77 mills were still crushing cane till now. In Karnataka, the sugar production was up at 42.50 lakh tonnes (38.84 lakh tonnes).
ISMA said that despite Government providing an assistance of Rs 4,000 per tonne for exports of raw sugar, the shipments were not happening on low global prices. The drop in futures for raw sugar in the New York market has been the lowest in the past seven years.
Sugar stocks
With the anticipated higher sugar production in the current season against the estimated consumption of 248 lakh tonnes, it is expected that sugar stocks at the end of 2014-15 season may surpass the normative requirement of 60 lakh tonnes, by 25 lakh tonnes more, ISMA said.
The sugar industry body said that cane price arrears across the country have reached an all-time record level of Rs 17,000 crore and with the depressed ex-mill prices of Rs 2,100-2,200 per quintal in western and southern states and Rs 2,300-2,400 per quintal in northern states, mills are not able to generate funds to pay even the fair and remunerative price to the sugarcane farmers.
The Government should come forward with some strategy to help the ailing sugar industry; otherwise it would become difficult for the mills to survive, ISMA added.
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