 "UP sugar production estimated to breach 75 lakh tonnes in 2016-17")
On the back of estimated higher cane acreage and better recovery, sugar production in Uttar Pradesh is projected to jump by 10% in 2016-17 crushing season. The state sugar production in the coming season is pegged at 75.40 lakh tonnes (LT) compared to 68.22 LT in 2015-16, a hike of about 10.54%.
UP, India's leading sugarcane producer, is projected to increase its acreage to 23.35 lakh hectares (LH) during 2016-17. Last year, the area under the cash crop was a shade lower at 23.02 LH, according to Indian Sugar Mills Association (ISMA).
ISMA estimates of cane acreage are higher than the projections by the UP state government, which had pegged the total area at 20.90 LH for the next season.
ISMA is expecting a better yield in 2016-17 due to a 'substantial increase' in area under the high yielding cane variety CO0238, which would boost both cane production and availability for crushing by mills.
The weather in UP has so far been good with adequate rainfall unlike in Maharashtra and North Karnataka, ISMA noted in a press communique.
Citing a preliminary cane survey, the UP cane department had recently claimed the acreage would grow by an aggregate 2% to 20.90 LH vis-a-vis 20.52 LH in 2015-16.
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UP cane commissioner Vipin Kumar Dwivedi had said cane plant crop area had clocked a growth of over 10% due to proactive measures by the government, including providing high yielding varieties to farmers, timely supply of fertilisers, farm chemicals, etc.
Primarily, the sugarcane yield is achieved through either plant or ratoon (stubble) crop. Plant crop is freshly sowed cane, while for ratoon crop, the farmers leave lower part and root of the cane crop uncut at the time of harvesting. This gives multiple crops from the ratoon before farmers have to sow fresh plant for next harvesting.
The current ex-factory retail prices of sugar in UP are 25% higher compared to last year. While, sugar prices last year were in the region of 2,700-2,800 per quintal, this year the prices are firmer at 3,400-3,500 per quintal, with no possibility of dipping in the near future.
Meanwhile, UP sugar mills have to pay about Rs 2,000 crore in farmers' cane dues for the last year's crushing season, when the mills had clocked better sugar recovery of about 10.50%.
The UP sugar sector is dominated by private sugar mills, around 90 of the total 116 units are owned by private players.