Rains, floods may not hit sugar output

The recent floods in north Karnataka are unlikely to dampen the spirits of the sugar industry in the state. Though the state will witness some shortage in the supply of sugarcane to the factories during the next sugar season (October 2005 to September 2006), the sugar output will be higher than in the present year, say industry sources.

Karnataka, the fourth largest sugar producer in the country, is likely to register a higher sugar output at an estimated 14 lakh metric tonnes in 2005-06, as compared to 11-11.5 lakh metric tonnes during the present year-ending September 2005.

The output during the present year is lower when compared to 13.5 lakh metric tonnes produced in 2003-04, due to the drought in the state last year, according to South Indian Sugar Mills Association (SISMA) officials.

Floods have damaged crops in three northern districts of the state "" Belgaum, Bagalkot and Bijapur. Though the final estimate of the extent of damage is yet to be assessed, the preliminary survey by the state revenue and agriculture departments shows that nearly 59,000 hectares of standing crop valued over Rs 477 crore has been damaged.

Says Vidya Murukumbi, president, SISMA: "The floods in north Karnataka will not really affect the sugar output in the state, because the damage to crop has occurred in only the northern part of the state and the southern part of the state has remained unaffected. The cane yield per acre will also be higher next year due to good rains across the state."

She said that the cane yield per acre is expected to go up to 38 metric tonnes as against the normal yield of 32 metric tonnes per acre. Moreover, the area under sugarcane cultivation has gone up in the state from 2.5 lakh hectares in 2003-04 to 3.13 lakh hectares during 2004-05. It is likely to be around the same figure in 2005-06, she told Business Standard.

Another reason for higher yield expected next year is attributed to better crop management across the state and a decline in pest attacks.

According to M Srinivasan, managing director, Sri Chamundeswari Sugars Ltd, the state's sugar production will still be lower when compared to the earlier estimate of 15-16 lakh tonnes for 2005-06. "As against earlier estimates, the industry may finally achieve only 13.5-14 lakh tonnes. This is because of the shortage of cane in the northern parts of the state due to the damage of crop in the floods," says Srinivasan.

However, the industry is not really worried over the likely shortage of cane as "we are hopeful to meet the shortage of cane by sourcing from either Maharashtra or Tamil Nadu," said Srinivasan.

There are 42 sugar factories in Karnataka, of which 10 are defunct. Another 17 new sugar factories are under various stages of construction in the state.