Don’t miss the latest developments in business and finance.

Monsoon raises hopes for sugar output in Maharashtra

ISMA predicted India's sugar output at 23.26 million tonnes for the crushing season 2016-17

Conditions for sugar mills to avail subsidy eased
Dilip Kumar Jha Mumbai
Last Updated : Aug 16 2016 | 1:01 AM IST
Above monsoon rainfalls in Maharashtra have raised hopes for a revival in sugar output for the ensuing crushing season beginning October.

Data compiled by the India Meteorological Department (IMD) showed Maharashtra, the second largest sugar producing state in India, has received normal to excessive rainfalls across all meteorological sub-divisions or districts barring Dhule. Especially in major sugar cane growing regions including Solapur, Kolhapur, Sangli, Satara, Pune etc have received almost above normal monsoon rainfalls this season after two preceding years of drought.

Last two years of deficient rainfalls had prompted state agriculture department to forecast almost 45 per cent of decline in sugar output this year at 5.2 million tonnes for the upcoming season beginning October 2016 against 9.2 million tonnes of sugar output reported in the 2015-16.

“Sugarcane growing regions in Maharashtra have received normal to above normal monsoon rainfalls this season. Since the reservoirs in these regions have also received good storage level, we are expecting better yield this season than last year. Thus, sugar output might be revised upwards for the crushing season 2016-17 in Maharashtra,” said a senior sugar industry official.

IMD sources said that rainfalls during the current season till date have been three per cent of above the 50-year average in Maharashtra. Also, above normal rainfall activity is likely over many parts of India.

“July – September is the grand growth period for standing cane crop for which rainfall remains crucial. Excessive rainfalls during this period helps raise sucrose formation in the standing cane crop resulting into higher yield and sugar output,” said Abinash Verma, Director General, Indian Sugar Mills Association (Isma).

Following two subsequent years of drought, industry body Isma predicted India’s sugar output at 23.26 million tonnes for the crushing season 2016-17, less than the current 2015-16 sugar season production of around 25.10 million tonnes.

Maharashtra’s cane area has declined in 2016-17 sugar season, which is mainly due to the drought like situation last year, poor rainfall and lesser water availability for irrigation.

As against the cane area of 10.5 lakh hectares in 2015-16, the cane area is expected to come down to 7.80 lakh hectares in 2016-17. Sugar production is, therefore, estimated to be around 6.15 million tonnes in crushing season 2016-17, as against 8.41 million tonnes produced in the season 2015-16.

“Above normal rainfalls will certainly benefit standing sugarcane crops for the current season. But, the actual assessment is yet to be done on its impact on sugar output. There are some regions in which monsoon rainfalls have been average. In some part of state, yield will improve only 2-5 per cent,” said Sanjeev Babar, Managing Director of Maharashtra State Federation of Sugar Factories.

With an estimated opening balance on October 01, 2016 of 7.1 million tonnes, and estimated production of 23.26 lakh tonnes, sugar availability during the 12 months of next season will be 30.36 million tonnes, enough to meet the domestic sugar consumption requirement of 26 million tonnes in season 2016-17.

Also Read

First Published: Aug 16 2016 | 12:14 AM IST

Next Story