Mixed bag! Sugar production drops 54% till Nov-end, arrears decline

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Published: December 4, 2019 2:53:13 AM

As per trade and market sources, about 15 lakh tonne have been contracted for exports, which includes contracts made with port based refiners by sugar mills.

As compared to 418 sugar factories which were crushing sugarcane as on November 30 last year, only 279 mills were crushing sugarcane as on November 30 this year, said Indian Sugar Mills’ Association (Isma).

Sugar production for the period ended November 30, 2019 in the current sugar season (October-September) has declined by 54% at 18.85 lakh tonne as compared to 40.69 lakh tonne in the same period last season (till November 30, 2018).

As compared to 418 sugar factories which were crushing sugarcane as on November 30 last year, only 279 mills were crushing sugarcane as on November 30 this year, said Indian Sugar Mills’ Association (Isma).

According to the information from state governments, sugar mills had cane arrears of about `5,000 crore pertaining to 2018-19 sugar season as of November 2019 against arrears of Rs 8,000 crore as of November-end last year, it added.

In Uttar Pradesh, 111 sugar mills were crushing till November-end of current season and have produced 10.81 lakh tonne.

At the end of November 2018, 105 sugar mills were crushing in Uttar Pradesh which had produced 9.14
lakh tonne. In Maharashtra, sugar mills started late in the current season on November 22, 2019. Nearly 43 sugar mills have started crushing operations as of November 2019 against 175 sugar mills as on corresponding date of last year.

Till November in current season, production in the state was 67,000 tonne as compared to18.89 lakh tonne produced in the period ended November 2018. In Karnataka, 61 sugar mills were crushing on November 30, 2019 and 5.21 lakh tonne was produced.

Comparitively, as on November 30, 2018, 63 sugar mills were operating and had produced 8.40 lakh tonne.
In Gujarat also, sugar mills started crushing operations late by about 20 days this season due to excess rainfall during south west as well as north east monsoon.

Around 14 sugar mills were crushing as on November-end and they have produced 75,000 tonne as against 16 mills which had produced 2.05 lakh tonne in the same period last season.. Crushing operations in all the other states have also begun and the pace of crushing is picking up.

About 50 sugar mills were operating in other states who have produced 1.41 lakh tonne in this season up to November end this season as compared to 2.21 lakh tonne produced with 60 mills in operations during the same period last season, Isma added.

As per trade and market sources, about 15 lakh tonne have been contracted for exports, which includes contracts made with port based refiners by sugar mills.

Major destinations for sugar exports are Iran, Sri Lanka, Afghanistan and African countries. Ex-mill sugar prices in northern states continue to remain between Rs 3,250-3,300 per quintal for the last couple of months and in western and southern states, it was hovering around Rs 3,100-3,250 per quintal.

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