Uttar Pradesh sugar output to beat Maharashtra after 11 years’ gap: ISMA

By: | Updated: September 29, 2016 8:39 AM

Uttar Pradesh will beat Maharashtra to become India’s largest sugar-producing state in the marketing year starting October 1 for the first time since 2005-06.

Uttar Pradesh will beat Maharashtra to become India’s largest sugar-producing state in the marketing year starting October 1 for the first time since 2005-06, even though the country’s overall output will drop 7% in 2016-17 from a year before, according to the first advance estimate of the Indian Sugar Mills Association (ISMA), released on Wednesday. (Source: Reuters)Uttar Pradesh will beat Maharashtra to become India’s largest sugar-producing state in the marketing year starting October 1 for the first time since 2005-06, even though the country’s overall output will drop 7% in 2016-17 from a year before, according to the first advance estimate of the Indian Sugar Mills Association (ISMA), released on Wednesday. (Source: Reuters)

Uttar Pradesh will beat Maharashtra to become India’s largest sugar-producing state in the marketing year starting October 1 for the first time since 2005-06, even though the country’s overall output will drop 7% in 2016-17 from a year before, according to the first advance estimate of the Indian Sugar Mills Association (ISMA), released on Wednesday.

FE was the first to report on July 8 the chances of Uttar Pradesh regaining its supremacy in sugar production in 2016-17, after a gap of 11 years, citing preliminary estimates of ISMA. Areas under cane in Maharashtra is estimated to have dropped 23% in 2016-17, while the cane coverage in UP has remained almost the same as last year . So while Maharashtra could see its sugar output falling to around 62.70 lakh tonne in 2016-17, down 25% from a year before, production in UP is estimated to rise 12% to 76.60 lakh tonne in 2016-17, according to the ISMA forecast.

The country’s overall sugar production is projected to fall to 233.7 lakh tonne in 2016-17 from 251 lakh tonne a year before. Area under the cane crop across states has dropped by 5% to almost 50 lakh hectares, showed the estimates. Two straight years of drought through 2015 has been cited by some as a major reason for farmers to shift from cane crop in Maharashtra.

“Since sugar mills have cleared cane price of farmers to large extent (in UP), it is expected that… cane diversion to other sweeteners like gur and khandsari may fall. Also, the acreage under the high-yielding and high-recovery variety Co0238 is much more than last year,” ISMA said. In recent years, while UP has been the country’s largest cane producer, Maharashtra has been the largest sugar producer, mainly due to much better yield in the western state.

However, with an estimated opening stocks of 7.1 million tonne (mt) on October 1, and estimated production of 23.26 mt, sugar availability in the 2016-17 marketing year will be 30.36 mt, much higher than the domestic sugar consumption requirement of 26 mt, ISMA said.

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