Sugar production in the 2014-15 season till end November is higher by 56 per cent at 17.81 lakh tonnes over the corresponding period last year, according to the Indian Sugar Mills Association. Mills had produced 11.4 lakh tonnes in the same period last year.
About 297 mills had started crushing by end-November as against 262 in corresponding last year. A total of 509 mills had undertaken crushing in 2013-14 season that ended in September. About 200 sugar mills, largely in Uttar Pradesh, Karnataka and to some extent in Maharashtra are yet to start operations in the current crushing season.
In UP, only 60 of the 124 have started crushing mainly during the latter part of November. As a result, only 1.2 lakh tonnes has been produced by the mills in the second largest producing state. Similarly in Maharashtra, 148 mills had started operations and produced about 10.5 lakh tonnes, almost double the output over corresponding last year.
In Karnataka, 31 mills had started crushing and 3.36 lakh tons of sugar has been produced upto end November, almost similar to that of last year. With mills holding surplus stocks of 20 lakh tonnes, the ex-mill prices have fallen and are prevailing at the lowest in the last couple of year. The industry is looking forward to incentives, especially for the shipment of raw sugar, which it believes would help stabilise the prices.
The Government has announced incentives for raw sugar production and exports upto 30th September 2014, but has not announced the incentive rate for October and November 2014. The sugar production has picked up in full swing across the country and, therefore, it is expected that this Government will very soon announce continuance of the incentive scheme from December 2014 onwards, the ISMA release said.