Sugar output up 14% till Mar 15 of this yr: ISMA

The country's sugar production has risen by over 14 per cent to 22.18 million tonnes till March 15 of the current marketing year, industry body ISMA today said while demanding creation of buffer stock to improve their cash flows for making sugarcane payment to growers.
The sugar production stood at 19.38 million tonnes in the corresponding October-September period last year, it added.
The government has revised upward sugar output estimates to 26.5 million tonnes for the ongoing 2014-15 marketing year (October-September) from the earlier projection of 25 million tonnes for the same period.
"With higher estimation of sugar production by the government by 1.5 million tonnes and lower expected raw sugar exports, the industry has requested for creation of 2 million tonnes of buffer stocks," Indian Sugar Mills Association (ISMA) said in an official release.

This would help the industry with some cash flows to carry the extra sugar and will check distress sales by some sugar mills.
"This 2 million tonnes can then be used by the government next season for its PDS requirements," it said.

As per official data, sugarcane arrears have touched Rs 16,364 crore till February-end of the 2014-15 marketing year.
While the government has extended subsidy on export of 1.4 million tonnes this year, ISMA said, fall in global sugar prices have restricted raw sugar exports from India.
Global sugar rates have fallen due to sharp depreciation of Brazilian currency in comparison to the US dollar, making sugar exports from Brazil even cheaper, it added.

According to ISMA's latest data, sugar production in Maharashtra -- the country's leading sugar producing state -- increased to 8.4 million tonnes till March 15 of this marketing year from 6.41 million tonnes in the year-ago period.
Similarly sugar production in Uttar Pradesh, the country's second biggest sugar producing state, increased to 5.62 million ton ens from 5.07 million tonnes, while that in Karnataka it rose to 3.8 million tonnes from 3.45 million tonnes in the period under review.
The mills in other states have produced about 4.34 million tonnes of sugar till March 15 of this marketing year, as compared to 4.45 million tonnes in the year-ago, ISMA data showed.

As many as 476 sugar mills were in operation till March 15 of this year, as against 409 mills in the year-ago. Around 42 mills have already close their operations, it said.