India's Final Ultimatum to Sugar Hoarders - Sweet Challenges and Bitter Surprises For Indian Sugar

Sweet Challenges and Bitter Surprises For Indian Sugar

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Sweet Beginnings and Sour Realities

India’s sugar production, in the ongoing season, has encountered a bitter twist, with a 7% decline, reaching 14.87 million tonnes (mt) by January 15. The cooperative sector’s sugar mills body attributes this dip to the sugarcane crop’s unpredictable journey to the mills for crushing. While the sugar recovery rate mirrors the previous year’s, the actual sugar output hangs in the balance, dependent on the forthcoming sugarcane deliveries.

Government Initiatives to Sweeten the Deal

Acknowledging the Agriculture Ministry’s forecast of lower sugarcane output, the Government has proactively initiated measures to bolster sugarcane availability. The ban on sugarcane juice for ethanol and an increased ethanol rate for C-heavy molasses has directed more cane towards sugar production. This strategic shift is evidenced by a notable 9% decrease in sugar production.

Regional Sugar Production Output

Contrary to the overall national trend, experts highlight a positive anomaly. Maharashtra and Karnataka boast higher-than-expected sugar production, offering an opportunity for increased ethanol production from syrup and B-heavy molasses. Experts also advocate for India to sustain its ethanol program robustly, steering clear of sugar surpluses, especially with Brazil ramping up sugar production.

Mintec Global

Currently, 509 sugar factories are operational, a slight decrease from 511. Four factories in Karnataka concluded operations early, while two in Maharashtra initiated their processes later than usual. Across the nation, sugar mills have processed 156.3 mt of sugarcane, yielding 14.87 mt of sugar, maintaining an average sugar recovery of 9.51% from October 1 to January 15 in the 2023-24 sugar season.

Projections and Presidential Perspectives

As per the sources, the country’s sugar production is to reach at least 30.55 mt by the season’s end. State-wise breakdowns reveal Uttar Pradesh’s steady operations, while Maharashtra and Karnataka display resilience in production despite the national downtrend.

  • Uttar Pradesh: 120 factories operational, crushing 46.57 mt of sugarcane, producing 4.61 mt of sugar with 9.90% average recovery.
  • Maharashtra: 197 sugar mills in operation, crushing 54.84 mt of sugarcane, producing 5.1 mt of sugar with 9.3% recovery.
  • Karnataka: 69 factories operational, crushing 32.29 mt of cane, producing 3.1 mt of sugar, with 9.6% recovery.

The journey reveals a complex portrayal as India grapples with a 7% decline in sugar production. Government initiatives aim to sweeten the deal, yet regional disparities persist. Maharashtra and Karnataka shine in the national downturn, emphasizing the potential for ethanol production. The resilience of Uttar Pradesh, coupled with insightful projections, paints a picture of a sugar season with both challenges and optimistic horizons.

 

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