India’s sugar output fell 10% in the last 4 months

The Dollar Business Bureau 

India’s sugar output declined by 10% to 128.55 lakh tonnes in the first four months of the 2016-17 marketing year that began from October 2016, due to lower sugarcane production in Maharashtra on account of drought. The marketing year of sugar is generally between October to September.

For the 2016-17 season, Indian Sugar Mills Association (ISMA) has revised its sugar production estimates to 21.3 million tonnes down, from its previous estimates of 23.4 million tonnes. The Association has also lowered the estimates for sugar consumption to 24.2 million tonnes for the current year after taking into account the news of slow sugar sales.

“As on January 31, sugar mills in India have recorded a production of 128.55 lakh tonnes, against the 142.80 lakh tonnes produced in the last season on the given date, ISMA said in a statement. 

In the current sugar season, around 334 sugar mills are operational, while last year by January end, 494 sugar mills were functioning. 

In Uttar Pradesh, 45.59 lakh tonnes of sugar have been have produced by mills till January compared to 35.94 lakh tonnes in the same period a year ago. 

“According to field reports on drawl and yield of cane for producing sugar, mills in Uttar Pradesh are estimated to have produced 39-40 lakh tonnes of sugar”.

Mills in Maharashtra have till now produced 36.76 lakh tonnes of sugar as against 54.17 lakh tonnes in the same period of the last marketing year. 

“Last year in January 2016, almost 25 lakh tonnes of sugar was dispatched by sugar mills, whereas the off-take has been significantly lower in January 2017. The trend noticed in October- December 2016 with sugar sales by mills was lower by 5.5 lakh tonnes in 2016-17 (sugar season), is continuing in January 2017 also,” ISMA said. 

With the Centre deciding not to offer subsidy on sugar for PDS (public distribution system) to state governments which in the previous year was Rs.4500 crore whereas this year it is proposed to be cut to Rs.200 crore, ISMA said that there may be a lesser off-take of sugar sales for ration shops and PDS.