Record Production in 2023-24 Season
All 207 sugar mills in Maharashtra have halted production for the 2023-24 season after achieving a record output. The mills collectively produced 11.02 million tonnes (mt) of sugar, an increase of 0.49 mt compared to the previous season. This remarkable achievement has industry players urging the central government to lift the export ban on sugar. And relax restrictions on ethanol production for the 2024-25 season. These measures are seen as crucial to prevent a decline in sugar prices and ensure market availability.
Calls for Lifting Export Ban
Industry representatives argue that the Union government’s decision to ban sugar exports was based on inaccurate production estimates. They emphasize the importance of allowing sugar exports to maintain market stability. Initial fears of a reduction in sugar output this season were proven unfounded, alleviating concerns within the industry. The state saw participation from 103 co-operative and 104 private mills, with the Solapur division hosting the highest number of mills at 50.
Kolhapur Leads in Production
Kolhapur division emerged as the top sugar-producing region in Maharashtra. Forty mills in Kolhapur produced 2.81 mt of sugar, achieving the highest extraction rate of 11.59 percent. Across the state, mills achieved an average extraction rate of 10.27 percent, up from 9.98 percent last season. The total amount of sugarcane crushed was 107.308 mt, compared to 105.53 mt in the previous season.
Regional Breakdown
Out of the total 207 mills, 59 were located in the Marathwada and Vidarbha regions, with only eight mills operating in Vidarbha. Industry experts noted that unseasonal rains positively impacted the cane crop, ensuring sufficient supply for all mills. Despite a challenging start to the crushing season in November, marked by farmer protests demanding higher prices for their produce, the mills managed to operate successfully and meet production targets.
Impact of State Polls
With the Lok Sabha elections in Maharashtra now concluded, the state is gearing up for the Assembly elections in October. Sugar mill operators are concerned that farmers’ organizations, especially those in the sugar belt, will intensify their demands for a higher Fair and Remunerative Price (FRP). One industry player, speaking on the condition of anonymity, highlighted the challenges: “The payment of FRP to farmers hinges on the central government’s decision regarding the export ban. Additionally, the government needs to consider raising the minimum sugar price so that mills can adequately compensate farmers. Sugar mills are being entangled in political issues, and with the Assembly elections approaching, many millers will face significant challenges. This will impact the upcoming crushing season.”
The record of sugar production in Maharashtra’s 2023-24 season has highlighted the need for strategic decisions by the central government. Lifting the export ban and relaxing ethanol production restrictions are essential steps to stabilize the market and prevent a decline in sugar prices. The positive impact of unseasonal rains on the cane crop and the successful operation of mills despite initial challenges demonstrate the industry’s resilience and potential. However, the upcoming Assembly elections pose significant challenges for sugar mills, as farmers’ demands for higher FRP may intensify. The central government’s decisions in the coming months will be crucial in determining the future stability and growth of the sugar industry in Maharashtra. By addressing these concerns, the government can ensure that the industry continues to thrive and contribute significantly to the economy.