Sweet year ahead: Sugar sector outlook turns positive for next season

Lower sugarcane crop, higher ethanol production to protect industry from glut

The beleaguered domestic sugar sector, bogged down by mounting sugarcane areas and market glut, is looking at ‘sweeter’ times next season (2019-20) over projected lower sugarcane crop coupled with higher diversion of the crop for ethanol manufacturing.

Besides, the likely higher off-take of sugar in this summer season is also a positive for the sugar industry. Centre has raised sugar sales quota to 2.1 million tonnes  (MT) for May and a similar quota is expected for June 2019. 

According to Indian Sugar Mills Association (ISMA), water in Maharashtra reservoirs was below normal levels due to lower rainfall in the last