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Up Sugar Output Up a Tad; Many Mills Exchange Export Quota ISMA data show 4% rise in sugar production so far this season

Mintec Global
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Sugar production in Uttar Pradesh, India’s largest sugarcane growing State, remains high so far this season despite severe rainfall deficit in most of the districts and pest attacks on the main sugarcane variety, CO-0238 in several parts. But, Maharashtra may continue its top position as sugar producer for the second time this season.

According to Indian Sugar Mills Association (ISMA), sugar production until January 15 in the current season (October 2022-September 2023) was 15.68 million tonnes (mt) against 15.08 mt in the corresponding period a year ago. The data exclude the quantity diverted for production of ethanol.

Maharashtra has produced 6.03 mt, up from 5.88 mt a year ago, while mills in Uttar Pradesh have reported an output of 4.07 mt against 4.02 mt last year. Uttar Pradesh became the country’s largest sugar producer in the 2016-17 season thanks to the CO-0238 variety that improved both productivity and cane juice recovery substantially. However, Maharashtra regained the status of top producer in 2021-22 with a production of 13.72 mt of sugar.

Alternative needed

“There is an urgent need to find an alternative variety to CO-0238 with similar yield and recovery. Sugarcane farmers do not know what to do in view of red rot disease affecting the wonder variety,” Minister of State for Animal Husbandry and Dairy, Sanjeev Balyan, recently said at a conference organised by web portal Rural Voice. Balyan, who is MP from Muzaffarnagar in western Uttar Pradesh, also said it became the first such variety that pleased both farmers and sugar mills.

The CO-0238 variety increased sugar recovery by 2 per cent, benefiting the sugar mills, and raised cane productivity 1.5 times, benefiting farmers. When the country’s sugar production in 2019-20 dropped 21 per cent it was UP where the output touched a record high of 12.638 mt.

According to ISMA data, production in Karnataka, the third-biggest producer, is also higher, at 3.36 mt against 3.27 mt. Tamil Nadu has produced 3.6 mt compared with 0.21 mt a year ago and Gujarat’s output has been recorded at 0.48 mt against 0.46 mt.

Meanwhile, ISMA said 55 mt of sugar has been contracted by mills for export, out of which 18 mt have already been shipped out. The government has allowed sugar mills to export 6.012 mt by May 31 while a decision to allocate additional export quota is likely to be taken at the inter-ministerial group this month. The country exported a record high of 112 mt of sugar last season.

As many as 193 sugar factories have exchanged 1.490 mt, which is almost 25 per cent of total export quota, with other units at a premium that increased nearly four times before the sale window closed on January 4.

source: The Hindu Business line

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