Sugar production in the current season is expected to be around 30.7 million tonnes (mt), a shy short of 31.5 mt estimated in earlier projections, said Indian Sugar Mills Association (ISMA) in a statement on Monday.

At the same time, there has been a steep increase in arrears to be sugarcane farmers. According to the industry body, the arrears due to sugarcane farmers climbed to ₹19,000 crore, including ₹2,800 crore pending from the previous season, as on December 31 last year. The outstanding was ₹10,600 crore in the corresponding period in the previous sugar season, it said.

As on January 15, sugar mills across the country produced 14.87 mt of sugar, which was 8.32 per cent more than 13.56 mt produced in the season ended on September 30 last year. As many as 510 mills are currently undertaking crushing operation. “This is because the mills have started earlier this season, even though the whole year’s sugar production will be less than last year,” ISMA said.

ISMA revised the target for the current sugar season taking into satellite images of cane area already harvested and those of yet to be harvested. The first advance estimates put out by the sugar trade body estimated sugar production to be 31.5 mt this season. ISMA said it also expects a diversion of 0.5 mt of sugar into production of ethanol through ‘B’ heavy molasses.

While Uttar Pradesh (UP), where 117 mills are in operation, produced 4.19 mt sugar, crushing 38.12 mt sugarcane,Maharashtra where 188 sugar mills are currently crushing sugarcane produced 5.725 mt sugar till January 15.

As per satellite images, sugar production in UP may come down slightly to 11.28 mt in the current sugar season as against 12.05 mt produced in the previous season. The sugar production in Maharashtra, on the other hand, is estimated to be 9.5 mt, which is same as the earlier projections. In 2017-18, the western Indian State had, however, produced 10.72 mt of sugar.

Sugar production from Karnataka is expected to be 4.2 mt (3.75 mt in 2017-18), while the cumulative production from other States, including Tamil Nadu, Gujarat and Bihar, is estimated to be 6.2 mt, which is 0.25 mt more than that in the last season.

According to ISMA, it was doubtful whether sugar mills in the country would be able to attain the export target of 5 mt unless the government puts pressure or levy penalty on the mills which fail to achieve their quota. As of now, the export target that would be achieved is 3.5 mt, it said.

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