It?s now curtains for the sugar season in Uttar Pradesh this year. The second largest sugar producing state in the country closes this year with a total production of 58.75 lakh tonne sugar after crushing 643.01 lakh tonne of cane. Speaking to FE, an official of the cane department said all 125 sugar mills in the statehave been closed by Thursday.
While predictions had been made for sugar production of around 70 lakh tonne this year on the back of a 15-17% rise in cane area, the signs of crisis started showing in January itself, after late rains played havoc with the crop. This resulted in lower yields as well as low recovery, which resulted in the sugar industry trimming its initial estimates from 70 lakh quintals to 61 lakh quintals. However, the final figure of 58.75 lakh tonne have disappointed even the most optimistic of the industrialists. The only consolation that they derive is that the state has bettered its last year’s figures when it produced 51.8 lakh tonne of sugar.
According to a spokesperson of the sugar factory, the low output in UP will definitely upset the country’s total estimation of producing 255 lakh tonne of sugar in this season, more so as even Maharashtra, has fallen short of its estimate. ?The country will be close to touching the 24 million tonne sugar production figure,? he said, adding that for the sugar industry this year has thrown up a piquant situation when it is forced to sell sugar at prices that are far lower than the cost of production.
?While the cost of sugar production in UP stands at approximately Rs 2,900/quintal, it is being sold at Rs 2,750/quintal, which, in the long run, is suicidal for the industry,? he stated.