The sugar industry in Tamil Nadu will fall off the domestic industry chart in the coming season as production continues its downward spiral.
In the coming 2017-18 sugar season (October-September), the industry estimates sugar production could drop lower than previously estimated.
Output could hit a low of about 6-7 lakh tonnes in the coming season against the current season’s 10-10.5 lakh tonnes. As of June 15, production is a little short of 10 lakh tonnes and another 50,000 tonnes could come in over the next couple of months.
In 2015-16, production stood at 10.98 lakh tonnes as of June, which was about one-third the capacity.
Fresh planted cane area available to the private sector mills as of April is about 28,100 acres for the coming season against 64,000 in the current season. The ratoon crop, the offshoot that comes up after harvesting, is 1.05 lakh acres (1.20 lakh). Fresh planting is “unbelievably low”, indicating sugarcane farmers’ lack of enthusiasm, said a senior executive at a sugar company.
Going by current season numbers, the cooperative sector could contribute to less than 50 per cent of that for the private sector.
N Ramanathan, Managing Director, Ponni Sugars, said the anticipated drop is primarily due to the extended dry spell.
Apart from poor planting, farmers are harvesting immature cane, which should have been available to the mills in the coming season.
Sugarcane yield and sugar recovery have also hit a low. Output is less than 30 tonnes an acre, a 20 per cent drop that hits farmers’ income.
Sugar recovery is low at about 9 per cent while mills pay a statutory sugarcane price linked to 9.5 per cent recovery, which is a burden for the sugar mills.