Gujarat sugar output may grow 30%

Sugar production in Gujarat is likely to grow by 30 per cent this year with an expected increase in sugarcane crushing to 105 lakh quintal compared with 82 lakh quintal last year.

The Saurashtra region, where the major sugar mills are located, is expected to have a good rainfall this year, thus boosting the sugarcane crop in the region.

"This year we are planning to export sugar on account of expected surplus production, which is estimated to be around 30 per cent higher than last years. India is one of the major sugar producers and consumers in the world and it is almost a closed market with 95 per cent of the consumption being met from internal production in years of shortfall. In years of sugar surplus, 95 per cent of the production is consumed locally," Praful Harshe, managing director, Gujarat State Agricultural Marketing Board told Business Standard.

Gujarat's recovery rate of around 11 per cent is slightly less than the mills of Uttar Pradesh and Maharashtra where the recovery rate is around 12 per cent.

The average recovery rate in the country was between 10 per cent to 10.3 per cent during the last two seasons and recovery rate of molasses was around 4.2 per cent.

"Gujarat is set to witness a better sugar scenario in terms of discipline because of the 100 per cent cooperative system in the state. Other states like Uttar Pradesh, Maharashtra and Andhra Pradesh has a mix of cooperatives, private and public sector," said Harshe.

The sugarcane crushing in Gujarat is expected to grow from 75.9 lakh tonne in 1995 to over 105 lakh tonne by the end of the current financial year.

The main reason for the expected higher production is the timely arrival of rainfall, which was a reason of major disappointment for the farmers of Saurashtra region in the last fiscal.

Analysts feel 2005-06 season would see a recovery of sugar because of an improvement in soil moisture.

While UP's output is slated to touch 55 lakh tonne, mills in Maharashtra are expected to produce 45 lakh tonne. Sugar production in Gujarat is seen around 12.6 lakh metric tonne.

Maharashtra mills crushed around 194 lakh tonne of cane and produced 22.31 lakh tonne of sugar at 11.49 per cent average recovery.

The country's total sugar output in the 2005-06 season is expected to touch 180 lakh tonne with UP, Maharashtra, Andhra Pradesh and Gujarat being the major contributors.