Sugar production in India is estimated to be 213 lakh tonnes (lt) in the 2016-17 crop year — the lowest in seven years, according to fresh estimates made by the industry.
The downward revision from 234 lt for the ongoing crop year (October 1, 2016-September 30, 2017 estimated) in September 2016 is on account of some sugar mills closing operations in drought affected areas, mostly in Maharashtra and Karnataka, according to the Indian Sugar Mills Association (ISMA), which came up with the second advance estimates on Wednesday.
There are also field reports that sugarcane availability in these two States is lower than earlier expectations, as well as reports of lower yields per hectare of sugarcane and slightly lower sugar recoveries in parts of Maharashtra and Karnataka, ISMA added. Availability of sugar in the domestic market, however, is not likely to be affected.
“Considering 213 lt of sugar production, sugar despatches of 242 lt in the whole 2016-17 sugar season and a high opening balance of 77.5 lt for the season, the closing stock of sugar as on September 30, 2017 will be 48.5 lt,” the official release said.
The closing balance is equivalent to at least two-and-a-half months of sugar consumption, it added.
The estimates are based on satellite images procured by ISMA of the area harvested for crushing up to January 10 and the area under sugarcane that is yet to be harvested in the remainder of the season.
Sugar production up to January 15 in the current season is 104.80 lt, around 5 per cent lower than what was achieved last year, up to January 15, 2016. “Now that sugar mills in the drought affected areas have started closing down, the difference from last year will be higher as the season progresses,” the release said.