Rain Disrupted Maharashtra Cane Supplies, Forcing Sugar Plants to Close: Shekhar Gaikwad

Sugar mills in Maharashtra, India's top producing state, are poised to end cane crushing 45 to 60 days earlier than last year due to poor weather, a senior state government official told Reuters on Friday.

Shekhar Gaikwad, Maharashtra's sugar commissioner while addressing the media stated the western state of Maharashtra, which accounts for more than a third of the country's sugar output, could produce 12.8 million tonnes of sugar in the 2022/23 marketing year, which began on Oct. 1, down from an earlier forecast of 13.8 million tonnes.

Lower sugar output might prohibit the world's second-largest exporter from increasing exports, thus sustaining global prices and allowing competitors Brazil and Thailand to raise shipments.

In the current season, India has permitted sugar mills to export just 6.1 million tonnes of the sweetener, of which sugar mills have already committed to selling 5.7 million tonnes.

Gaikwad later stated that the excessive rains which slowed the vegetative development of sugarcane. Lower cane is seen for crushing this year.

A few mills in the state's central region might begin shutting down operations in 15 days, and by the end of April, all except three or four mills could have ceased crushing.

Sugar mills in Maharashtra remained active until mid-June of 2021/22, despite the fact that they were battling to harvest the crop.

Maharashtra, which frequently surprises the world sugar market with large fluctuations in production, has produced 6.76 million tonnes of sugar so far, slightly more than the 6.67 million tonnes produced last year.

Downfall on the Exports of Sugar

Maharashtra produced a record 13.7 million tonnes in 2021/22, above the initial forecast of 11.2 million tonnes, allowing New Delhi to export a record 11.2 million tonnes.

However, sugar production in Maharashtra and the neighbouring state Karnataka has been revised downward this year, preventing India from exporting the additional sugar requested by the sector, according to a Mumbai-based dealer with a global trading business.

As the sugar export quota was approaching its limit, the Indian Sugar Mills Association and other trade associations petitioned the government to approve up to 4 million tonnes of additional shipments.