Murugappa Group sees Tamil Nadu sugar production plummeting this year

With consumption and production more evenly matched, sugar prices are expected to remain stable at the level of Rs 33-34 a kg

While major producing states like Uttar Pradesh and Maharashtra have lately seen robust cane production amid good rainfall, Tamil Nadu has been impacted by three straight years of drought. Making the matters worse, cane production in the state is expected to be lacklustre this year as well.

At present only 20 sugar mills are operating in Tamil Nadu, against 34 on December 31 last year. Cumulatively, they produced 170,000 tonnes of sugar as of the end of last calendar year, compared with 186,000 tonnes a year earlier, according to data from the Indian Sugar Mills Association (ISMA).

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