Maharashtra sugar output drops 15%

State's sugar production estimated to be 9.2 million tonnes.

The sugar production in Maharashtra has declined by 15 per cent with mills crushing 20-22 per cent less cane this season (October 2007 -September 2008).

Till January 4, 158 mills in the state operating at 100 per cent capacity and above, produced 2.60 million tonnes of sugar after crushing 23.5 million tonnes of cane.

The recovery rate, which was 9.50 per cent at the beginning of the season, has risen to 11.04 per cent and is likely to hit the last year's average of 11.50 per cent in a few months.

Attributing the lower production this season to a number of factors including rain disrupting cane transportation in October and late return of workers from Diwali and Dusshera vacations, an official of the Sugar Commissioner's office said, "Mills will have to continue operating till the last cane is available for crushing. Therefore, the current sugar season is likely to stretch up to the first week of May," he added.

Normally, the first fortnight of April is considered the ideal time for a majority of sugar mills across the country to stop crushing as the recovery starts declining after that.

Though crushing canes with recovery potential below 9 per cent is considered non-profitable for sugar mills, Sugar Commissioner of Maharashtra directed mills to first crush last year's crop, which has an average recovery of 7-8 per cent.

The largest sugar producing state in the country is estimated to produce around 9.2 million tonnes of sugar after crushing 84.4 million tonnes of cane this year. Last year, the state contributed 9.1 million tonnes of the country's total sugar output of 28.2 million tonnes.

Meanwhile, Sugar Commissioner Rajgopal Deora convened a meeting of government officials along with industry representatives on Tuesday to take stock of the situation.

Officials discussed issues and problems faced by various stakeholders including, mills, farmers and trade bodies. Deora also met the Chief Minister Vilasrao Deshmukh on Monday and apprised him of the developments in the politically sensitive commodity in the state.

The commissioner has directed all industry stakeholders to give a production estimate for the season. The estimate will be officially released next month.

The state government last year paid Rs 131 crore in compensation to cane farmers in order to retain farmers' credentials with cane farming.

Out of 183 sugar mills in the state registered with the government, only 158 have started production this year. Five more mills that are in various stages of machinery repairs, are likely to obtain government permission to start crushing very soon.