The Indian Sugar Mills Association (ISMA) on Tuesday upwardly revised the country’s sugar output estimate for marketing year 2019-20 (October to September) to 26.5 million tonnes (mt), from the earlier estimate of 26 mt.

But the production will remain nearly 18 per cent lower than that of the previous year, as heavy monsoon rains and floods have hit cane yield, mainly in Maharashtra and Karnataka.

ISMA, which released its second advance estimates based on the satellite images of both harvested and yet-to-be-harvested cane area, said higher diversion to ethanol production also contributed to lower sugar output. Still, the production would not only be sufficient to meet domestic demand and export commitments but also leave behind a comfortable carry-forward stock of under 10 mt, ISMA said. This would be well lower than the previous year’s opening stock of 14.5 mt, it added.

Mills in Uttar Pradesh expect to produce about 11.8 mt in 2019-20, which is almost similar to what it produced in the previous sugar season.

Production in Maharashtra

Production in Maharashtra is expected to be about 6.2 mt, against 10.72 mt last year, while the cumulative output from Karnataka sugar mills is estimated to decline 25 per cent to 3.3 mt. The rest of the sugar producing States will together contribute 5.2 mt, ISMA said.

Per contracts signed so far, sugar mills will make 61.63 crore litres and 10.6 crore litres of ethanol from B-heavy molasses and cane juice, respectively. Another tender is under finalisation and this will further increase ethanol supplies.

ISMA said it is hopeful that the government will continue to keep a buffer stock of 4 mt next year, too, making the net available sugar balance for market sale around 6 mt, which it termed “reasonable”.

Related Topics
comment COMMENT NOW