Amid Covid-affected times, contracts for export of 4.2 mt have been made till beginning of May 2020.
Sugar production between October 2019 and May 15 this year in the current sugar season has declined by 19% to 26.46 million tonne (mt) against 32.61 mt in the same period last season — a drop of 6.15 mt. Compared with 38 sugar mills which were crushing sugarcane as on May 15, 2019, 63 sugar mills were crushing sugarcane on May 15 this year.
Amid Covid-affected times, contracts for export of 4.2 mt have been made till beginning of May 2020. As per reports available from mills and ports, about 3.6 mt have been moved/dispatched from the mills for exports. Contracts for export are being signed for various destinations, with major quantities for Indonesia and Iran. Shipments are also happening and are expected to normalise in the days to come, Indian Sugar Mills’ Association (ISMA) said in a release on Monday.
The government has allowed export of 6 mt of sugar under maximum admissible export quota (MAEQ) during the 2019-20 marketing year (October-September) to liquidate surplus sugar in the global markets.
According to ISMA, the Union government has urged mills for diversion of excess sugarcane and sugar for production of fuel ethanol as a long-term solution to address the problem of excess sugar stock. It is already well-accepted by ISMA, as augmentation in ethanol capacity for the upcoming years is at different stages of progress/ implementation.
According to data, Uttar Pradesh sugar mills have produced 12.22 mt as on May 15 — 5.48 lakh tonne higher than the production of 11.68 mt on the corresponding date last year, considered to be the highest-ever sugar production in the state. In Maharashtra, sugar production till May 15 was 6.08 mt against 10.71 mt produced in the 2018-19 sugar season — almost 4.63 mt lesser. All the operating sugar mills in Karnataka closed their crushing operations by April 30 and produced 3.38 mt. In Tamil Nadu, sugar production till May 15 was 5.65 lakh tonne against 7.16 lakh tonne produced on the corresponding date last year.
The remaining states of Andhra Pradesh, Telangana, Bihar, Uttarakhand, Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Rajasthan and Odisha have collectively produced 3.27 mt till May 15.