 "Sugar")
The country's sugar output rose by 6.5% to 7.98 million tonnes in the first three months of the 2015-16 season while exports were 3,00,000 tonnes in the same period, industry body ISMA said today.
Ex-mill sugar prices have improved in the past fortnight by 1-2 per kg but prices still remained below cost of production during October-November period of this season.
As per the latest production data released by Indian Sugar Mills Association (ISMA), the country's overall output has increased to 7.98 million tonnes in the October-December period of this year, up by 6.5% from 7.49 million tonnes in the year-ago period.
Sugar output in Maharashtra, the leading sugar producing state, rose to 3.37 million tonnes from 3.26 million tonnes in the review period. The average sugar recovery in the state was 10.36% this year as against 10.44% last year.
Sugar production in Uttar Pradesh, the second largest sugar producing state, increased marginally to 1.83 million tonnes in October-December of this season as against 1.69 million tonnes in the year-ago period. The average sugar recovery in the state was 9.2%.
Sugar production in Karnataka rose to 1.55 million tonnes from 1.24 million tonnes, while the output in Gujarat increased to 4,40,000 tonnes from 3,88,000 tonnes in the period under the review, ISMA said in a statement.
The sugar production in both Andhra Pradesh and Telangana was lower by 41,000 tonnes to 2,15,000 tonnes so far this year, while the output was almost similar to the year-ago period at 80,000 tonnes in Tamil Nadu.
Sugar production in other states especially, Bihar (1,40,000 tonnes), Haryana (1,00,000 tonnes), Punjab (95,000 tonnes), Uttarakhand (70,000 tonnes) and Madhya Pradesh (75,000 tonnes) remained almost at the same level.
On exports, ISMA said mills have contracted for export of around 8 lakh tons of sugar till date and have physically dispatched around 3,00,000 tonnes of sugar.
"Since there is no parity on export of raw sugar due to high cost of sugarcane in India and depressed global price, sugar mills in India have produced almost negligible quantum of raw sugar and are mainly exporting white sugar," it said.
On sugar prices, ISMA said though domestic ex-mill sugar prices have improved in the past fortnight by Rs 1-2 per kg, the all India average ex-mill price of sugar for October to November, 2015 was around Rs 27-28 per kg, which was still Rs 4-5 per kg below the cost of production.
India is all set to produce surplus sugar for the sixth straight year at 26-27 million tonnes in 2015-16 (October- September). To liquidate surplus stock, the Centre has made it mandatory for millers to export four million tonnes this season.
