Indian sugar production doubles to 42.90 lac tons in 2020
New Delhi/IBNS: India's sugar production more than doubled to 42.90 lac tons as of November 30, 2020 as compared to last season’s production of 20.72 lac tons for the corresponding period, due to earlier start of sugarcane crushing this season, according to Indian Sugar Mills Association (ISMA).
There were 408 sugar mills in operation in the country as on November 30 compared to 309 sugar mills as on November 30, 2019, said a release issued by the association.
Production trend in the current season so far, appears to be more or less similar to 2018-19 SS, when 418 sugar mills had produced 40.69 lac tons of sugar, as on November 30, 2018, except that the diversion of cane juice and B-molasses this season to ethanol will be much more, resulting in a net reduction of around 20 lakh tons of sugar.
In Uttar Pradesh 111 sugar mills were crushing sugarcane on during the period ended Novemebr 30 and have produced 12.65 lac tons of sugar till that date. At the end of November, 2019 last year, similar number of sugar mills were crushing in Uttar Pradesh who had produced 11.46 lac tons.
As per reports, about 28 mills are currently diverting B heavy molasses/ cane juice for production of ethanol in the current season, while during the corresponding period last season, about 18 - 20 sugar mills were diverting B heavy/cane juice.
In Maharashtra, 158 sugar mills have started crushing operations during the period this year, as compared to 71 sugar mills which operated on the corresponding date of last year. Till the end of last month, sugar production in the State was 15.72 lac tons, compared with 1.38 lac tons produced in the State till November 30 last year.
The higher production is because of earlier start of crushing operations in Maharashtra and higher availability of sugarcane in this season.
Currently, it is reported that about 55 - 60 sugar mills are diverting B Heavy molasses/ cane juice for production of ethanol in the current season, as compared to about 25 - 30 sugar mills which were diverting B heavy/cane juice for production of ethanol, in the corresponding period last season.
In the State of Karnataka, 63 sugar mills were crushing on 30th November, 2020 and 11.11 lac tons of sugar was produced. As compared to this, 60 sugar mills were operating who had produced 5.62 lac tons of sugar.
In case of Karnataka, it is reported that about 28 - 30 sugar mills are currently diverting B heavy molasses/ cane juice for production of ethanol in the current season, as compared to about 15 - 18 sugar mills which were diverting B Heavy molasses/cane juice for production of ethanol, in the corresponding period last season.
In Gujarat, 15 sugar mills were in operation on till November 30 last and have produced 1.65 lac tons of sugar, compared to 14 sugar mills who were crushing on, 2019 and had produced 62,000 tons of sugar.
Crushing operations in all the other States have also begun and the pace of crushing is picking up. About 61 sugar mills are operating in other states who have produced 1.77 lac tons in this season upto 30th November, 2020, which in the previous season was 1.64 lac tons, when 53 mills were operating as on 30th November, 2019.
The average ex – mill sugar prices in most of the major States are reported to be declining with the commencement of current season w.e.f. October 2020, barring few Northern States where the prices are more or less steady.
In the two major States of Maharashtra and Karnataka, the ex–mill prices which were hovering around Rs.3200-3250 per quintal for last couple of months have gone down by almost Rs.50-100 per quintal.
Similarly, in the southern states also, the ex–mill prices have declined by a similar figure. This indicates pressure in domestic market due to high opening balance, expected increase in production in the current season, delayed export programme announcement by Government and no decision yet on increase of MSP of sugar.