Sugar manufacturer Rana Sugars today said the actual utilization of its cane crushing capacity would be 27 per cent less than its installed capacity in the ongoing crushing season because of acute shortage of cane.
"Due to low availability of cane, we expect the utilization of our current cane crushing capacity will remain underutilized in this (ongoing) season," Rana Sugars Managing Director Rana Inderpratap Singh told PTI here.
"The Company will be able to crush only 11,000 tonne of cane per day against the installed capacity of 15,000 tonne per day," Singh said.
Chandigarh-based Rana Sugars, a listed entity, has three manufacturing facilities, two in Uttar Pradesh and one in Punjab with total capacity of 15,000 tonne crushing per day.
Against the average crushing season of 100 days, Rana Sugars is anticipating the season to last just for 75 days. "Considering the acute shortage of cane, I do not think sugarmills will operate more than 75 days," he said.
The company is also expecting a major jump in cost of production this season in view of falling recovery rate and rising payout to cane growers for running mills.
"This year, we think our input cost will rise to 35-36 per kg against a level of Rs 23-24 per kg last year," he said, adding, "it will mainly happen due to decline in recovery rate which is expected to be at 8.5 per cent this year against 10 per cent achieved last year," he said.