What is the Reason for Low Sugar Production This Year?

During the current 2019-20 SS, sugar production as on 15th November 2019 was 4.85 lakh tons, as compared to 13.38 lakh tons produced last year on 15th November 2018. 100 sugar mills were crushing sugarcane till 15th November 2019 as compared to 310 sugar mills last year.

The reason for lower sugar production as compared to last season is that sugar mills in Maharashtra has not yet started their crushing operation this season, as compared to 149 mills which were already operating last year during this period, and had produced 6.31 lakh tons till 15th November 2018.

Similarly in Karnataka, 18 sugar mills were in operation as on 15th November 2019 and have produced 1.43 lakh tons, as compared to 53 mills which were operating had produced 3.60 lakh tons last year upto the corresponding date.

The States of Maharashtra and Karnataka have faced drought last year, because of which the area planted under sugarcane therein has dropped by about 30% as compared to last season.  With lower rainfall and water availability, the yields and recoveries would also be lower.  Plus the recent floods and extra rainfall have affected the crop further.  The Government of Maharashtra has now decided to start the crushing of cane by the mills therein from 22nd November 2019.

In Uttar Pradesh, 69 sugar mills have started their crushing operations for this season and they have produced 2.93 lakh tons of sugar by 15th November 2019.  Last year in the same period, similar number of mills were in operation but they had produced 1.76 lakh tons till 15th November 2018.

There were 2 mills each in Uttarakhand, Bihar, 1 in Haryana, 3 in Gujarat and 5 mills in Tamil Nadu have commenced crushing operations and they have together produced 49,000 tons of sugar till 15th November, 2019.

As per trade and port information, about 2 lakh tons of sugar have already been shipped out for exports.  From market sources and information from sugar mills, it is learnt that contracts for another 12 lakh tons have been signed by the parties for exports.