The country’s sugar output increased to 247.2 lakh tonnes (lt) as of March 31 for the season to September, according to the latest data released by the Indian Sugar Mills Association (ISMA). This is 28.42 lt or 13 per cent higher than the output in the corresponding period a year ago.

As on March 31, operations were underway in 392 of 530 mills against 316 last season and 231 in 2012-13. Of the 138 mills that have stopped operations this season, 41 are in Uttar Pradesh, 36 in Maharashtra, 26 in Andhra Pradesh and Telangana, and 10 in Karnataka.

Raw sugar exports, despite government assistance, are lower due to slump in raw sugar futures in the New York market.

“With depressed ex-mill prices of ₹2,100-2,200/quintal in Western and Southern States and ₹2,300-2,400/quintal in Northern States, mills are not able to generate funds to pay even FRP (fair and remunerative prices) to sugarcane farmers,” said an ISMA statement.

The association anticipates sugar stocks at the season’s end to 25 lt in excess of the “normative requirement” of 60 lt. “The government should come forward with some strategy to help the ailing sugar industry, otherwise it would become difficult for the mills to survive,” the statement said.

State-wise output

Mills in Maharashtra, the country’s largest sugar producing State, recorded an output of 93.64 lt against 70.69 lt at the same time a year ago, while in UP, 63.6 lt had been produced compared with 59.16 lt. Production in Karnataka hit 42.5 lt against 38.84 lt last season.

Production slid in Tamil Nadu and Gujarat which recorded 7.7 lt and 9.75 lt respectively, compared with 9.26 lt and 10.71 lt in 2013-14. The output in Andhra Pradesh and Telangana has been pegged at 8.6 lt, down from 9.47 lt produced a year ago.

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