The unprecedented increase in production has severely hit sugar prices in the domestic market, resulting in the Government stepping in with a slew of measures such as restricting imports and relaxing the export norms. According to the Indian Sugar Mills Association (ISMA) release India`s Sugar Production had surpassed 31 million tonnes (mt) till April 30, nearly 1.5 mt more than what the sugar industry officially had forecast in March.
Total production may go up further to anywhere between 31.5 to 32 mt as 130 sugar mills, mainly in Uttar Pradesh, are continuing with their crushing operations, the release further added. Earlier, the Government had approved a scheme to give a sugarcane production subsidy of Rs 55 per tonne to farmers as their arrears have crossed Rs 20,000 crore. The measure, which would cost the Government around Rs 1,540 crore, is expected to help improve the liquidity condition of sugarcane farmers.
As per the industry’s estimate, sugar mills in UP have so far produced 11.2 mt and 80 out of a total 119 mills in the State are still continuing their crushing operations. “Some of these mills are closing fast, whereas few are expected to continue crushing till the second week of May 2018,” ISMA further added..
Maharashtra, the second-highest sugar-producing State, has so far produced 10.7 mt. Most mills in the State, barring 15 of them, have ceased their crushing operations.
Mills in Karnataka, on the other hand, has already completed crushing operations and produced 3.63 mt during the current sugar season, which extends from October last year to September this year.
Sugar mills in Bihar, Punjab and Haryana too attained peak levels in production and together contributed 2.235 mt to the overall sugar production in the country. While all mills in Bihar have stopped crushing, few mills in Punjab and Haryana are still operating. Among other states, Tamil Nadu produced 1.09 mt of sugar, Andhra Pradesh and Telangana together contributed 0.71 mt and Gujarat’s share was 0.53 mt, according to ISMA release.
