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Sugar production expected to fall by 9%

ISMA said production in 2016 has actually started trailing behind last year

Policy Pulse
Publish Date: Mar 19 2016 1:20PM | Updated Date: Mar 19 2016 1:20PM

Sugar production expected to fall by 9%

 India's sugar production till March 15 has been recorded lower than the corresponding period of previous year. The sugar production is expected to be 9% lower than the actual production of 283 lac tons of sugar of last year.

Industry body Indian Sugar Mills Association (ISMA) confirmed that the sugar production in the current year has actually started trailing behind last year's production, indicating that the total production will be much less than the previous year. 
 
An ISMA release stated, "At the same time last year, 473 sugar mills were under operation. In the balance period of the last year's season after March 16, around 62 lakh tonnes of sugar was produced. As compared to that, 325 sugar mills are under operation in the current sugar season, which is lower by 148 numbers of sugar mills. Therefore, as is the expectation, the current year's sugar production will be around 9% lower than the actual production of 283 lakh tonne of sugar of last year." 
 
The sugar mills in the country have produced 221.30 lakh tonnes of sugar during the current season upto March 15, 2016. This is slightly lower than last season's sugar production upto the corresponding period of 221.57 lakh tonnes. 
 
As on March 15, 2016, 325 sugar mills were still under operation, which were 473 mills last year at the same time. 189 sugar mills in the country have already closed their operations, out of which 31 are in U.P, 91 in Maharashtra, 36 in Karnataka, 10 mills in Bihar and remaining in other States like Gujarat, A.P & Telangana, Uttarakhand etc. 
 
Maharashtra sugar mills have produced 76.77 lakh tonnes of sugar as against 84.07 lakh tonnes last year upto March 15, 2015. As compared to 168 sugar mills, which were still crushing sugarcane last season, 86 sugar mills continue to crush sugarcane in this season now. 
 
The mills in Uttar Pradesh have produced 60.82 lakh tonnes of sugar upto 15th March, 2016 which was 56.25 lakh tonnes at the corresponding period last season. As against 100 sugar mills operating last year at this time, 85 sugar mills are crushing sugarcane now. 
 
Karnataka sugar mills have produced 38.79 lakh tonnes of sugar and 28 sugar mills are still crushing sugarcane now. Last year, as on March 15, 2015, Karnataka had produced 38 lakh tonnes and 61 sugar mills were operating. 
 
As per reports furnished by sugar mills, contracts have been finalised for 14 lakh tonnes for exports against MIEQ, of which about 11.5 lac tons have already been moved from mills to ports. It is expected that sugar mills can export another 5 to 6 lac tons in the remaining period of the current sugar season.