Sugar Production Could Drop 12.38 Percent to 28-29 Million Tonnes in 2019-20

A senior Food Ministry official today said that India's sugar production is expected to drop by 12.38% to 28-29 million tonnes in the 2019-20 marketing season that starts this month (October), due to sharp fall in the productivity in Maharashtra.

Sugar production stood at 33.1 million tonnes in the 2018-19 marketing year i.e. October to September. The official told media that "After collecting inputs from the sugarcane growing states, the total sugar production for the current year has been pegged at 28 to 29 million tonnes".

The official added that the fall in overall production is mainly because of expected drastic decline in the sugar output in Maharashtra, which is the country's 2nd largest producer of the sweetener, because of floods & drought.

He said, "There would be at least four million tonnes decline in Maharashtra's sugar production this year". Though sugar mills have partly started crushing operation, but will commence in full swing from 15 November onwards. There are around 534 sugar mills in the country.

The Centre has fixed fair & remunerative price (FRP) of sugarcane at Rs 275 per quintal for the current marketing year.

It must be noted that FRP is the minimum price that sugarcane growers are legally guaranteed to get from sugar mills. The crop that has a more than 10% recovery rate, will get an extra Rs 2.75 / quintal for every 0.1% increase.

Cane growers in many states like Karnataka, Andhra Pradesh and Maharashtra, are paid on the basis of the fixed fair & remunerative price set by the Central Government. On the other hand, in states such as Punjab, Uttar Pradesh, Tamil Nadu etc, have a State Advised Price.

It is also important to mention that sugarcane output is also estimated to be lower at 377.77 million tonnes in the 2019-20 crop year (July to June) as against 400 million tonnes last year, according to Agriculture Ministry's first estimate. Karnataka and Uttar Pradesh are other two major sugar producing states in India.