Sugar output may drop 10%

Low yield, delayed start to crushing season largely responsible for decline.

The country's sugar production is estimated to decline about 10 per cent this year due to low yield and a late start to the crushing season (October-September). Total output is estimated at 260 lakh tonnes during the current season as compared with 285 lakh tonnes last year.

BITTER HARVEST

Total output is estimated at 260 lakh tonnes during the current season as compared with 285 lakh tonnes last year

Harvesting in Maharashtra and Uttar Pradesh, the two largest sugar producing states, started with a delay of about 45 days and 35 days, respectively

The yield in Maharashtra is likely to decline by 16-18 per cent to 62-63 tonnes per hectare as against 73 tonnes per hectare last sugar season

The per hectare output in Uttar Pradesh is set to fall by 12-15 per cent to 58 tonnes from 65 tonnes last year

According to B J Maheshwari, company secretary, Dwarikesh Sugar Industries, after a bumper crop estimate, a fall in sugar output can mainly be attributed to low yield per hectare as the harvesting started at least a month-and-a-half late.

Harvesting in Maharashtra and Uttar Pradesh, the two largest sugar producing states, started with a delay of about 45 days and 35 days, respectively because of poor labourer turnout and unseasonal rain during the beginning of the season.

Since the sugarcane crop does not require any additional rain for maturing, unseasonal spells result in the crop maturing without full sucrose content. High humidity was another factor that hindered the crop's growth.

The yield in Maharashtra is likely to decline by 16-18 per cent to 62-63 tonnes per hectare as against 73 tonnes per hectare last sugar season. Similarly, per hectare output in Uttar Pradesh is set to fall by 12-15 per cent to 58 tonnes from 65 tonnes last year.

Thus, total sugar output in Maharashtra is estimated to decline to 82 lakh tonnes as compared with 92 lakh tonnes last year, while the production in Uttar Pradesh is expected to fall to 74 lakh tonnes from 85 lakh tonnes.

Meanwhile, in contrast with the Sugar Commissioner's claim, sugar mills in Maharashtra and Uttar Pradesh have started winding up operations for the current season on unavailability of sugarcane.

About half a dozen mills in Maharashtra, especially in the Sangli-Kolhapur region, have closed down while about 35 mills in Uttar Pradesh have declared closure of units for the current year. Mills are running in full swing in the Marathwada region and the season in this area is likely to continue till April-end.

Out of the 183 registered sugar mills in Maharashtra, only 166 have begun production this year. About 80 mills are registered with the government of Uttar Pradesh and ran with full capacity.

The Sugar Commissioner of Maharashtra and Uttar Pradesh have earlier claimed that mills would continue crushing this year till May-end because of late start of crushing and bumper cane crop.

As these mills have a commitment to the state government to crush the last cane available, they, according to sources, have ignored the low quality canes available in their respective areas of command.

The Maharashtra government compensated Rs 131 crore to farmers' standing crop last year, which it does not want to continue this year. Therefore, the Cane Commissioner had directed all sugar mills to continue crushing till the sugarcane availability.

In Uttar Pradesh, the rift between the state government and mills over farmers' arrears delayed the crushing.

As a normal practice, canes below 9.5 per cent recovery are not crushed and are used for producing jaggery and khandsari, and juice making.

Surprisingly, recovery is estimated to remain high throughout the country with Uttar Pradesh expecting an average recovery of 9.4 per cent and Maharashtra 12 per cent this year as against 9.0 and 11.5 per cent, respectively, last year.