Sugar production estimated at 26-26.5 million tonnes, up from 24.2-24.5 million tonnes.
Area under sugarcane in the new crop year that starts in October 2011 is expected to increase by around 8 -10 per cent because of good price to growers, relatively favourable weather and continuation of positive sugar cycle.
In 2010-11, sugarcane was planted in 4.98 million hectares across the country, of which 1 million hectares was in Maharashtra and over 2 million hectares in Uttar Pradesh, official estimates show. Uttar Pradesh and Maharashtra are the two largest sugarcane producing states in the country, accounting for more than 80 per cent of the annual crop production.
Industry officials estimate that area under sugarcane next year could go up to 5.47 million hectares because of favourable factors, of which acreage in Maharashtra is expected to rise by 5 per cent, while that in Uttar Pradesh by 10 per cent from this year. Actual production of sugarcane is expected to be around 380 million tonnes, up from 346 million tonnes in 2010-11.
| SUGARY RISE figures in million tonnes | ||
| Title | 2010-2011 | 2011-2012* |
| Area ** | 4.98 | 5.47 |
| Cane production | 346.00 | 380.00 |
| Sugar production | 24.20-24.50 | 26.00-26.50 |
| * Figures for 2011-2012 are unofficial estimates as the crop is still in planting stage **Area is in million hectares Note: The sugarcane crop year runs from October to SeptemberSource: Trade and industry sources | ||
“As a result of higher sugarcane production we estimate that if sucrose content is normal in cane and large quantities are not diverted for other purposes then sugar production in 2011-12 should be around 26 to 26.5 million tonnes,” Abinash Verma, Director General of Indian Sugar Mills Association (ISMA) told Business Standard.
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Sugar production this year is estimated to be around 24.2 to 24.5 million tonnes. India’s annual consumption of sugar is around 22 to 23 million tonnes.
Sugarcane acreage in Uttar Pradesh, the country’s second largest producing state is estimated to be around 2.31 million hectares, up almost 9 per cent from last year.
“The acreage is expected to rise by 8 -10 per cent next year because of good price to growers, continuation of the positive sugar cycle and good progress in ratoon sugarcane crop,” Verma said.
Ratoon crop in sugarcane is the new cane which grows from the stubble left behind are harvesting. This enables the farmers to get three or four crops from these before they have to replant. The reason why the cane does this is because sugarcane is a type of grass.
He said that average cane price paid to sugarcane farmers in 2010-11 was much more than last year as both the central government fixed ‘fair and remunerative price’ and state advised price were much higher than last year.
Infact, in Uttar Pradesh, which houses some of the biggest sugar mills in the country, the average price paid to farmers in 2010-11 was almost Rs 40 per quintal more than the previous year at Rs 205 and Rs 210 per quintal. Similarly, the average price for sugarcane paid to farmers in other parts of the country was also significantly higher than the previous.
Officials said production of molasses, a key raw material for the alcohol, chemical and fuel industry is also expected to rise by 10 per cent. However, most industry officials are sceptical whether a higher crop production in 2011-12 could lead to more exports as the global sugar surplus next year has been estimated at 6 million tonnes of white sugar by the International Sugar Organisation (ISO).
“These are very early days to talk about final sugar production next year and export possibilities, but we believe that given the international trends there could be limited opportunity to export,” officials said.
In 2010-11, the government had allowed export of 450,000 tonnes of sugar under open general license (OGL). Exports under OGL require just a formal permission from the government no other obligation.