Maharashtra to dethrone UP in sugar production

Maharashtra is likely to replace Uttar Pradesh as the leading sugar producer of the country in the 2006-07 sugar season (October-September).

According to the data available with the Indian Sugar Mills' Association (Isma), Maharashtra is leading the pack with 26.59 lakh tonne, 36.2 per cent higher compared with 19.51 lakh tonne in the corresponding period last year.

Uttar Pradesh occupies the second slot with 22.27 lakh tonne, 17.1 per cent increase compared with the last year's figure of 19.01 lakh tonne. Karnataka came third with 6.81 lakh tonne, marginally better than the 6.78 lakh tonne produced last year.

As on December 31 last year, the country produced 73.5 lakh tonne sugar, about 21 per cent higher compared with the same period in the 2005-06 season.

"We expect to produce 70 lakh tonne sugar this season compared with 52.64 lakh tonne in the last season. Currently, we have 155 mills operating against 138 units in the last year. However, the recovery rate is lower at 10.8 per cent against the 11.1 per cent in the last season. This is primarily due to the rains which continued till the late November, thereby affecting the maturity and the sucrose content of sugarcanes," said Ajit Chowgule, secretary, Maharashtra State Cooperative Sugar Federation.

The country is on its way to achieve a record in sugar production. It is expected to be 230 lakh tonne against the consumption requirement of 185 lakh tonne. During the last season, total production was at 191 lakh tonne.

Besides, a good realisation in the last last year prompted many producers to up capacities which have become operational this season.

However, sentiment in the sugar market is not bullish as prices - both domestic and international - have been declining. Domestic price has come down to as low as Rs 1,500-1,550 a quintal against last year's rate of Rs 1,700-1750.