494 sugar mills are in operation against 486 sugar mills in operation same time last year
Till 15 January 2015, 494 sugar mills which are in operation have produced 103 lakh tons of sugar, as against 86.50 lakh tons produced same period last year when 486 sugar mills were in operation. This is about 19% more than what was produced in the last sugar season till 15 January.In Maharashtra, 173 sugar mills were in operation as on 15 January 2015 and produced about 43 lakh tons of sugar. Last year, as on 15 January 2014, 154 sugar mills were in operation and produced 31 lakh tons of sugar. Since crushing operations in all sugar mills are in full swing due to better availability of sugarcane, their production has become higher as compared to last year.
In U.P, 118 sugar mills have produced 25 lakh tons of sugar till 15 January 2015, as against 19.75 lakh tons produced last year during the corresponding period by 119 sugar mills. This is about 2.50 lakh tons less than what the State produced as on 15 January 2013, in 2012-13 sugar season.
In Karnataka, 63 sugar mills, which were in operation as on 15 January 2015 have produced 17 lakh tons of sugar, which is similar to that of last year's production till 15 January.
In case of Tamil Nadu, only 20 sugar mills have so far started their crushing operations in 2014-15 season and they produced 1.10 lakh tons of sugar till 15 January 2015. Last year, 36 sugar mills were in operation and produced 2.80 lakh tons of sugar. Only 8 private sugar mills have started their crushing operations in 2014-15 season and the remaining 12 are of cooperative sector. Private millers in the State have been asked by the State Government to clear off Rs. 300 per ton differential payment of cane price between FRP and the State declared price before start of crushing operations for 2014-15. This has stalled the operations of sugar mills in the State.
In Bihar, all 11 sugar mills which are in operation produced 2.40 lakh tons of sugar upto 15 January 2015 which is 0.80 lakh tons more than what they produced last year same period.
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In Andhra Pradesh and Telengana, 30 sugar mills produced 4 lakh tons of sugar as compared to 3.70 lakh tons produced by 34 sugar mills last year, same period.
In other States, sugar production remained more or less same as that of last year.
Ex-mill sugar prices in all parts of the country remain depressed during the last fortnight substantially below the cost of production. Accumulation of sugar stock, without adequate demand from the market both from domestic and global, are the main factors for declining trend in sugar prices.
From 1 October to 31 December 2014, sugar mills in the country despatched 58 lakh tons of sugar in the domestic market, as against 59 lakh tons despatched during the same period last year.
Due to delay in announcement of continuation of incentive for production of and export of raw sugar, the sugar mills are not in a position to plan their raw sugar production. Since only 2-3 months left before the crushing operations are over, mills are eagerly waiting for the announcement from the Central Government so that they could plan accordingly.
ISMA feels that only solution in the short run to solve the depressed ex-mill sugar prices and ensure the mills are able to pay cane price to the farmers on time as also repay bank loans, 15-20 lakh tons of sugar needs to be exported for which Government incentives for production of raw sugar and export thereof should be immediately announced. Otherwise, cane price arrears of farmers which had crossed Rs 13000 crore in March last year may be higher this season.
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