Good news: Uttar Pradesh sugar output could hit record 10 mn tonne

By: | Published: September 8, 2017 2:11 AM

India’s sugar production will likely rebound in the next marketing year starting October on higher planting in key producing regions, with output in Uttar Pradesh projected to around 10 million tonne for the first time, the Indian Sugar Mills Association said on Thursday.

sugar production, sugar production india, india sugar production, up sugar output, uttar pradesh sugar outputSeparately, Sanjay Bhoosreddy, principal secretary, Sugarcane Development and Sugar Industry, Uttar Pradesh, said the output in the state will rise to 10.3 million tonne in the 2017-18 from 8.8 million tonne in the current year. (Reuters image for representation only)

India’s sugar production will likely rebound in the next marketing year starting October on higher planting in key producing regions, with output in Uttar Pradesh projected to around 10 million tonne for the first time, the Indian Sugar Mills Association said on Thursday. Output in India, the world’s second-largest producer, could touch 25.1 million tonne in 2017-18, up 24% from 20.2 million tonne a year earlier, ISMA director general Abinash Verma said. Consumption may remain between 24-25 million tonne. “Sugar production is likely to rise in all states except Tamil Nadu. We estimate output at 25.1 million tonne next season and an opening stock of 4 million tonne. So, there would be sufficient availability of sugar in the country,” said ISMA president T Sarita Reddy on the sidelines of Kingsman sugar conference here. She said production in Uttar Pradesh could rise to around 10 million tonne in 2017-18.

Separately, Sanjay Bhoosreddy, principal secretary, Sugarcane Development and Sugar Industry, Uttar Pradesh, said the output in the state will rise to 10.3 million tonne in the 2017-18 from 8.8 million tonne in the current year. He said the crushing is expected to start in some part of UP from as early as October 10.

Area under cane across the country went up to 49.88 lakh hectares this year, against 45.64 lakh hectares in 2016-17.

Production in 2016-17 dropped due to erratic monsoon in key states such as Maharashtra, Karnataka and even Tamil Nadu, although Uttar Pradesh witnessed a bumper output. To boost domestic supply, the government had allowed duty free import of 5 lakh tonne of sugar in April-May. Again, on Thursday, it further allowed imports of 3 lakh tonne of raw sugar at a concessional duty of 25% to curb prices in southern states during and after the festive season.

International Sugar Organisation (ISO) Executive Director Jose Orive also said that India’s production will rise to 25 million tonne from 20.5 million tonne in 2016-17. The global production will rise by 7 to 179.3 million tonne, while consumption will increase 1.7% to 174.7 million tonnes, according to ISO.

Govt allows import of 3 lakh tonne of raw sugar

The government on Thursday notified a decision to allow imports of 3 lakh tonnes of raw sugar at a concessional duty of 25%. The import will have to be completed in 60 days from the date of issue of the tariff rate quota allocation certificate or license by the Directorate General of Foreign Trade to the importer. The imported raw sugar will have to be refined within 30 days from the date of filing of bill of entry or the date of entry inwards, whichever is later, the Central Board of Excise and Customs said in a notification. The imported sugar will be meant for only southern Indian states where a shortfall is anticipated during and immediately after the festival season.

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