 "Sugar industry cuts year's output estimate")
The association today said production is likely to fall by 9% from last year's actual production of 28.3 million tonnes which comes to 25.5 million tonnes. Last month ISMA had revised the estimate for current year sugar production to 26 million tonnes.
Compared to that exports are picking up due to recovery in international sugar prices. 1.4 million tonnes have already been contracted for exports and another 5-6 lakh tonnes exports is possible which could take total sugar exports to 2 million tonnes during the season.
International prices have recovered in last one month by 25% and trading at $15.9/ LB. during the period local price- New Mumbai Vashi delivery sugar price of NCDEX went up 4% to Rs.3333 per quintal.
The sugar mills in the country have produced 22.13 million tonnes of sugar during the current season upto 15t March, 2016 which is for the first time in the season has fallen compared to last year. Only 325 mills are operating in the country compared to 473 mills last year till mid-march.
189 sugar mills in the country have already closed their operations, out of which 31 are in U.P, 91 in Maharashtra, 36 in Karnataka and remaining in other States like Bihar, Gujarat, A.P & Telangana, Uttarakhand etc.
"Because as of now mills producing sugar are lower by 148 than last year, the current year's sugar production will be around 9% lower than the actual production of 283 lac tonnes of sugar of last year," sugar body said in a statement.
Even compared to 4 million tonnes of export quota fixed by the center for the current season, "as per reports furnished by sugar mills, contracts have been finalized for 1.4 million tonnes for exports and about 1.15 million tonnes have already been moved from mills to ports. It is expected that sugar mills can export another 5 to 6 lac tonnes in the remaining period of the current sugar season," it said.