India's Sugar production goes down.

India’s Sugar output goes down.

India, being the second largest sugar producer around the globe the output has gone down sharply by 30.22% to 7.70 million tonnes from October to December of this marketing year.

ISMA (Indian Sugar Mills Association) said the ex.mill prices are stable so far as they are helping the mills for the payment to cane farmers on time. In North India, It have been stable between Rs 3250-3350 per quintal  and in south India it have been stable between Rs 3100-3250.

The sugar exports are improving as ISMA have stated that increasing units of sugar mills have increased shipment over 2.5million tonnes of sugar. ISMA also explains their reason for the timely payment as the government of Utharakand , Uttar Pradesh, Punjab have not hiked the SAP (State Advised Price) .This facilitates the timely payment to the farmers.

According to the latest data country’s total sugar production has gone down from 11.17 million tonne to 7.79 million tonne in this marketing year. The First estimate made by the industries are up to 26 million tonnes from 33.16 million tonne which is lower in terms. The second Estimate can be expected soon.

In India Maharashtra is the largest sugar producing state where it has declined its production from 4.45 million tonne to 1.65 million tonnes within this marketing year itself. This 10% of change has been due to the floods faced by the sugarcane farmers and the flood affected areas. Floods have resulted to the loss of sucrose content in sugarcane which  serves as a key ingredient for the production of sugar. It also shows that last year 189 mills where operating but this year only 137 sugar  mills are operating which leads to decrease in the sugar production.

UttarPradesh the second largest state of India shows   different result where the production have rose up to 3.31 million tonne compared to last year. But 18 to 20 sugar mills have started to divert into B’ heavy molasses for production of ethanol.

Karnataka being the third largest producer of sugar in India declined sharply from 2.10 million tonnes   to 1.63  million tonnes.

States such as Gujarat, Bihar, Punjab, Haryana, Uttarakhand, Madhya Pradesh, Andra Pradesh and Telangana are also showing a slow pace of Production.

The government is now ready to reallocate the unexported quota to sugarmills, which  will help in Achieving the targets of MAEQ of this marketing year  2019-2020.