Sugar production in Punjab and Haryana is likely to drop by 30% in the current crop year because of fall in the area under cultivation and the growing preference among farmers for the more remunerative wheat and paddy crops.
The total area under sugarcane in Haryana this year has come down to 75,000 hectares against 90,000 hectares last year. Likewise in Punjab , the area under sugarcane cultivation this year is estimated at 63,000 hectares against 94,000 hectares last year. Punjab is expected to produce only 23.20 lakh quintal of sugar while the state?s consumption hovers at around 65 lakh quintals. Last year, the state had produced 24.30 lakh quintals of sugar.
Experts believe that sugar mills in the cooperative as well as private sector will be hurt as they would have no more than 242 lakh quintals of sugarcane for crushing this year against last year?s 260 lakh quintals. The crushing season will begin from November 25.
?There will be almost 30% fall in sugar production this year as the area under sugarcane cultivation has gone down drastically. We have announced the state advised price (SAP) for the 2010-11 seasons in advance to bring more area under sugarcane cultivation. We will offer Rs 200 per quintal for the early variety, Rs 195 for the mid variety and 190 for the late variety,? Mangal Singh Sandhu, Punjab cane commissioner, told FE.
Likewise, sugar production in Haryana is expected to hover around 20-25 lakh quintals against 59.88 lakh quintals in 2007-08. Gurchachan Singh Virk, former director, seed certification, Haryana, told FE that the main reason for fall in the area under sugarcane is growing preference among farmers for wheat and paddy that fetch better returns.