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India’s sugar production rose 11.5 per cent during the 2014-15 crushing season (up to March 31) on bumper cane production.
Data compiled by Indian Sugar Mills Association (Isma) showed India’s sugar production as on March 31 was 24.72 million tonnes — 2.84 million tonnes higher than the output reported a year ago.
The cane crushing season starts in October and ends in next September. However, bulk crushing season ends normally by mid-April.
“With higher sugar production in the current season, against the estimated consumption of 24.8 mt, carryover stock for the 2015-16 season is estimated at 8.5 mt, 2.5 mt higher than the normative requirement of six million tonnes,” Isma said in a statement.
Cane price arrears across the country have reached an all-time record level of Rs 17,000 crore and with the depressed ex-mill prices of Rs 2,100-2,400 a quintal, mills are unable to generate funds to pay even fair and remunerative price (FRP) to the sugarcane farmers.
“Therefore, the government should come forward with some strategy to help the ailing sugar industry. Otherwise, survival for sugar mills would become difficult,” Isma noted.
While the government has encouraged sugar exports through a subsidy assistance of Rs 4,000 a tonne on raw sugar shipment up to 1.4 mt, falling raw sugar prices in the benchmark New York market have hit exports.
Sugar prices have reached a seven-year low in global markets, Isma added.
