Sugar production in Karnataka is likely to rise 10-12 per cent to 1.8 million tonnes (MT) for the current season (October 2009-September 2010) compared with the corresponding period of the previous year. Twelve of the 54 mills in the state have started crushing.
Karnataka accounts for around 13 per cent of the country’s sugar production.
According to the South Indian Sugar Mills Association (SISMA), the state mills are likely to crush around 17 MT cane this year, 6.5 per cent more than the previous year, with an average sugar recovery of 10.6 per cent, a marginal rise from last year’s rate of 10.35 per cent.
Meanwhile, in line with their peers in other states, the mills in Karnataka have urged the Centre to increase the levy price to Rs 21.50 a kg, 63 per cent more than the existing price. While the Centre has doubled the levy quota to 20 per cent for all mills with effect from October 1, a decision on raising the levy price is yet to be taken. The Indian Sugar Mills Association, on October 14, had urged the Centre to increase the levy price at the earliest, sources said. “In view of the high cane prices offered to the farmers, it is necessary for us to get a higher levy. We are under pressure to increase the prices offered to farmers due to cane shortage for the second year in a row. This year, mills are paying Rs 1,800-2,100 a tonne for cane in Karnataka, which is about 20 per cent more than last year. So, the Centre should increase the levy price to an extent that will help us recover our cane price atleast,” industry sources said.
For the current season, the mills in south Karnataka have hiked the cane price by 25 per cent to Rs 1,500 a tonne compared with last year.
This year also, jaggery makers are posing a serious threat to sugar mills in the state. The jaggery units have offered Rs 1,800-2,000 a tonne of sugarcane, thereby leaving mills to either match their offer or pay more. Normally, the jaggery industry takes away around 25 per cent of the cane every year.
Duty-free imports till Dec ‘10
NewsWire 18 adds: The government has extended the deadline for duty-free white sugar imports till December 2010 to bridge the demand-supply gap, Agriculture Minister Sharad Pawar said on Wednesday. Earlier, the government had allowed private players to import up to 1 million tonnes of refined sugar without paying the 60 per cent customs duty till November 30, 2009. “We have extended the white sugar imports to December next year to ensure enough supply in the domestic market,” Pawar said.