Sugar production has recovered well in the first few weeks of the current season, despite delayed commencement of cane crushing in Uttar Pradesh. The state is the country’s second largest sugar producer.
The Indian Sugar Mills Association (Isma) has estimated production at 4.91 million tonnes at the end of last week, a rise of two per cent from the 4.81 mt in the same period last year.
Delay in the start of mill operations had pulled down sugar output by 2.7 per cent by the end of November.
But crushing has started well in Uttar Pradesh, after a late start, says Isma. Currently, 455 mills are operational in the country, as compared to 473 last year this time.
Maharashtra has produced 1.88 mt of sugar as against 1.83 mt last year, with 155 mills operational till now, 10 less than last year (14 less in the cooperative sector but four more in the private one). Yet, capacity utilisation of the Maharashtra mills is better, having crushed more cane than last year. Isma has estimated around 6.5 mt sugar production from Maharashtra in 2012-13, though with a shorter season, a lower output with diversion of cane to fodder. Recoveries are almost the same as last year, at 10 per cent.
UP has already produced 1.03 mt sugar, about 20 per cent less than last year at this time. Last year, 121 mills were operational as against 116 this year. Some in eastern UP have still to begin. With 8.56 per cent sugar recovery till now, it is better than last year. Isma is expecting total cane production of 140 mt in the country, of which 85-86 mt would be available to the sugar industry.
Karnataka has produced 1.1 mt of the sweetener against 905,000 tonnes last year. Tamil Nadu and Andhra Pradesh have together produced about 25 per cent more sugar than last year. Tamil Nadu has produced 200,000 tonnes with 29 operational mills and Andhra Pradesh, with a lesser number of operational mills, has produced about 170,000 tonnes.
Isma expects sugar millers to pay a combined Rs 66,000 crore for cane during 2012-13. With lower sales realisation and higher cane payment to farmers, it has asked the government to increase the import duty on raw sugar.