Commodity News

45.81 Lakh Tons of Sugar Produced Till 15th December 2019

sugar Mills

As on 15th December 2019, 406 sugar mills were crushing sugarcane for the year 2019-20 SS and they had produced 45.81 lakh tons of sugar, which is 35% less than the sugar production on the corresponding date of previous sugar season, of 70.54 lakh tons of sugar.  Last year on the corresponding date, 473 mills were operating.

In Uttar Pradesh, 119 mills have produced 21.25 lakh tons of sugar till 15th December, 2019, 2.31 lakh tons higher than last year, when 116 sugar mills had together produced 18.94 lakh tons on the corresponding period.   Sugar production during the current season till 15th December 2019 is higher than last year on the corresponding date, as sugar mills in the State started their crushing operations one week earlier in the current season.

In Maharashtra, 124 sugar mills are in operation and they have produced 7.66 lakh tons of sugar till 15th December, 2019.  In 2018-19 SS, there were 178 sugar mills in operation as on 15th December, 2018 and they had produced 29 lakh tons.

sugar

In Karnataka, 63 sugar mills are in operation who have produced 10.62 lakh tons of sugar till 15th December, 2019.  This is about 3.32 lakh tons less than the sugar production in 2018-19 SS as on 15th December, 2018.

The production in Maharashtra and Karnataka are lower than last year due to the fact that mills in these States started late by one month and one week, respectively.  Apart from this, sugar recovery so far is reported to be lower as compared to last year, mainly because mills are crushing damaged sugarcane due to floods, along with the fresh cane as also other climatic factors.

In Gujarat, 15 sugar mills are in operation and they have produced 1.52 lakh tons of sugar till 15th December, 2019.  In 2018-19 SS, as on 15th December, 2018, 16 sugar mills were in operation and they had produced 3.10 lakh tons of sugar till that date.

In Andhra Pradesh and Telangana, 14 sugar mills could start crushing till 15th December, 2019 and they produced about 0.30 lakh tons of sugar till that date. Last year, 18 sugar mills were in operation on 15th December 2018 and they had produced 1.05 lakh tons.

There are 6 sugar mills in Tamil Nadu in operation and sugar production till 15th December, 2019 was about 0.73 lakh tons, as compared to 0.87 lakh tons produced by 16 sugar mills as on 15th December, 2018.

In Bihar, Punjab, Haryana and Madhya Pradesh, there are 9, 16, 13 and 19 sugar mills are in operation respectively and they have produced 1.35 lakh tons, 0.75 lakh tons, 0.65 lakh tons and 0.35 lakh tons, respectively.

Against the two tenders floated by OMCs for ethanol procurement in the Ethanol Supply Year (December 2019 – November 2020), sugar mills and stand alone distilleries have offered to supply 163 crore litres of ethanol, out of which 10.38 crore litres will be from sugarcane juice, 62.58 crore litres from ‘B’ heavy molasses, 86.39 crore litres from ‘C’ heavy molasses and 3.78 crore litres from damaged foodgrains.  The supply of ethanol of about 73 crore litres from sugarcane juice and ‘B’ heavy molasses is almost double that of what was supplied in the last 2018-19 ESY, and, therefore, the diversion of sugar into ethanol this season is higher.

There is another tender expected shortly from the OMCs, against which more quantities of ethanol including the ethanol made from ‘B’ heavy molasses and sugarcane juice, is expected to be offered to the OMCs for 2019-20 ESY.



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