Diversion of sugar for ethanol to fall by 11%, says ISMA

THE INDIAN SUGAR MILLS ASSOCIATION (ISMA) HAS LOWERED ITS SUGAR PRODUCTION FORECAST TO 368 LAKH TONNES, DOWN 4.6% FROM THE JANUARY ESTIMATE OF 385 LAKH TONNES DUE TO UNEXPECTEDLY LOWER CANE YIELDS IN MAHARASHTRA CAUSED BY HIGHER RATOON CROP SHARE AND UNEVEN RAINFALL.

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Trade body Indian Sugar Mills Association (ISMA) has lowered it’s sugar production estimate by 3.5%, while the estimated diversion of sugar to ethanol has also been cut by 11% in its latest estimate issued today over the earlier estimate issued in January.

The all India sugar production after diversion for ethanol is projected to fall to 328 lakh tonnes from 340 lakh tonnes projected earlier, while the sugar production before diversion will slide to 368 lakh tonnes, down by 4.6% from 385 lakh tonnes of production estimated by ISMA in January this year.

“Crushing season in Maharashtra has ended at around 105 lakh tonnes, lower than our earlier estimate, due to unexpectedly lower cane yields owing to higher ratoon crop share and uneven distribution of rainfall,” said ISMA in a release.

Main season in Karnataka is on the verge of closure and have produced around 55 lakh tonnes so far. However, special season will operate in Karnataka from June/July, 2023.

“Cane yield in Uttar Pradesh is slightly better than expected and therefore the state is expected to produce around 105 lakh tonnes of sugar after diversion towards production of ethanol,” said ISMA.

The total sugar production in Maharashtra before diversion for ethanol is expected to fall from 136 lakh tonnes to 118 lakh tonnes, down by 13.2%. The sugar available for ethanol will decline from 15 lakh tonnes to 13 lakh tonnes, leaving 121 lakh tonnes of sugar for consumption as food, down by 11% from earler estimate of 136 lakh tonnes.

Sugar production of Uttar Pradesh is expected to increase to 105 lakh from 101 lakh tonnes projected earlier.

The above news was originally posted on news.google.com