ISMA revises upwards estimates of gross sugar output to 34 mn tonnes

Sugar industry body ISMA on Wednesday revised its estimates for gross production of the sweetener by 9.5 lakh tonnes to 340 lakh tonnes in the marketing year ending September.

In January, Indian Sugar Mills Association (ISMA) had projected the gross sugar production, without any diversion for ethanol, at 330.5 lakh tonnes in 2023-24 marketing year (October-September).

In a statement, ISMA said the gross sugar production is now estimated at 340 lakh tonnes in 2023-24, as against the gross output of 366.2 lakh tonnes in the previous year.

The executive Committee of ISMA in its meeting held on March 12, noted the sugar recovery, cane yield, remaining harvestable area / sugarcane and expected dates of closure of factories in different States.

 

The panel agreed that sugarcane availability in Maharashtra and Karnataka is higher than expected.

However, cane availability in another major state, Uttar Pradesh, is predicted to be lower than earlier estimates.

"Accordingly, ISMA has revised its all-India sugar production estimate for 2023-24 (before diversion into ethanol) as 340 lakh tonnes, against its earlier estimate of 330.5 lakh tonnes released in January 2024," the statement said.

The net sugar production stood at 328.2 lakh tonnes during 2022-23 marketing year with a diversion of 38 lakh tonnes of sweetener for ethanol-making from sugarcane juice and B-heavy molasses.

For the current 2023-24, the government has so far allowed sugar diversion of only 17 lakh tonnes for production of ethanol via sugarcane juice/B-heavy molasses.

This would mean net sugar production could be around 323 lakh tonnes.

ISMA said the net sugar production (after diversion for ethanol) stood at 255.5 lakh tonnes up to February 29 of 2023-24 marketing year.

As many as 466 sugar mills are still operating in the country, the statement said.