In the heart of Maharashtra, India’s sugar powerhouse, a somber cloud hangs over the forthcoming 2023-24 sugar crop season. The land renowned for its saccharine yields is poised to unveil a stark contrast—production poised to shrink by a staggering 14 percent. This ominous projection hints at the lowest sugar output in four years, casting a pall over industry and government officials. Their shared lament? An unusually parched August—the driest in over a century—has dealt a blow to sugarcane productivity.
Risk of effecting global sugar prices
As the scales tip toward reduced production, a specter looms—food inflation. A potential uptick in this critical economic indicator may force India to reconsider its sugar export prospects. Simultaneously, it could bolster global sugar prices, which already flirt with the highest levels witnessed in over a decade. Amidst this precarious dance, domestic sugar prices may ascend, bringing respite to industry titans such as Balrampur Chini, Dwarkesh Sugar, Shree Renuka Sugars, and Dalmia Bharat Sugar. Their timely profitability may herald swift payments to the beleaguered farming community. Maharashtra contributes more than one-third of India’s total sugar production.
A significant dip in sugar output of Maharashtra
According to the sources, Maharashtra’s sugar output in the upcoming 2023-24 season, commencing in October, could plummet to 9.0 million tonnes—a significant dip from the 10.9 million tonnes achieved in 2022-23. Who is the primary culprit? An unforgiving drought that withheld the lifeblood of sugarcane—sufficient water—during its critical growth phase. This arid narrative echoes across the state’s districts, with water scarcity impacting crop vitality. The cruel twist of fate unfolded as Maharashtra’s August rainfall dwindled to a meager 41 percent of the norm.
Recalling the heights of 2021-22, when Maharashtra’s sugar bounty reached a record-breaking 13.7 million tonnes, India embarked on a historic sugar export journey. A whopping 11.2 million tonnes of sugar sailed from New Delhi to international shores. With the looming specter of reduced production, a pruning of exports seems inevitable. 2022-23, if Maharashtra’s sugar harvest is restrained to a projected 10.5 million tonnes, India’s sugar exports may plunge by 6.1 million tonnes, signaling turbulent times for the industry.
As Maharashtra grapples with this formidable challenge, it seeks to navigate the stormy waters of sugar production, hoping for a sweeter outcome in the face of adversity.