In the initial two months of the 2023-24 sugar season, spanning October to November, India experienced a sugary setback with an 11% drop in production, landing at 4.32 million tonnes, as reported by the National Federation of Cooperative Sugar Factories Ltd (NFCSFL) on Friday. This figure marks a notable decline from the 4.83 million tonnes recorded during the same period last year.
Maharashtra and Karnataka Bear the Brunt
India, renowned as one of the globe’s major sugar producers, faced a stumbling block in output, primarily attributed to diminished yields in key states like Maharashtra and Karnataka. Maharashtra, the second-largest sugar producer, witnessed a substantial dip from 2.02 million tonnes in the previous year to 1.35 million tonnes in the current season’s initial two months. Similarly, Karnataka, the third-largest contributor, reported a decline from 1.21 million tonnes to 1.1 million tonnes.
Uttar Pradesh-The Sweet Saver In the Lull
In the ebb and flow in sugar production, Uttar Pradesh, the leading sugar-producing state, emerged as a beacon of hope with an increase in output. The state’s sugar production ascended from 1.06 million tonnes in the previous year to 1.3 million tonnes during the same period this season, offering a sweet contrast to the broader decline.
Sugarcane Quantity and Mill Operations Take a Hit
The decline in sugar production finds its roots in the reduced quantity of sugarcane crushed during October-November 2023-24. The figures reveal a notable drop from 57.06 million tonnes in the previous year to 51.01 million tonnes. This decline, coupled with a reduction in operational sugar mills – 433 compared to the previous year’s 451 – contributed to the overall decrease in sugar output.
Sugar Output Hit by Lower Sugarcane Crush
The first two months of the sugar season experienced a sugar recovery rate of 8.45%. The NFCSFL data highlights that the decline in sugar output can be directly attributed to the diminished quantity of sugarcane crushed during October-November.
Looking ahead, the NFCSFL anticipates a total sugar output of 29.15 million tonnes for the entire 2023-24 season. This projection represents a considerable reduction from the 33 million tonnes recorded in the previous season.
The recent downturn in India’s sugar production sends ripples through the global market. While Uttar Pradesh provides a silver lining, the challenges faced by Maharashtra and Karnataka underscore the volatility in this crucial sector. As the season unfolds, vigilant monitoring and adaptive strategies will be pivotal for the industry to sweeten its prospects.