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U.P Poised to Lead Sugar Production as Crushing Season Nears Conclusion

Sugar production in UP shows promising growth with expected sugar output of 10.42 million tons, while Maharashtra experiences decline, impacting national estimates

During the 2022-23 crushing season, it is projected that sugar production in Uttar Pradesh will reach 10.42 million tons. The sugar mills in the region are currently in the final stages of crushing, and it is expected that all mills will have completed the sugarcane crushing process by the end of this month.

As reported by the Sugarcane department, as of May 11, 2023, sugar mills in Uttar Pradesh have already crushed 1,076.29 lakh tons of sugarcane. Last season, these mills produced 101.98 lakh tons of sugar by crushing 1,016.26 lakh tons of sugarcane.

Efforts have been made by the state government to expedite the payment of cane dues, and so far, the mills have cleared Rs 27,357 crore to the cane farmers, which accounts for approximately 75.38 percent of the total dues.

To ensure the clearance of cane dues to farmers, the state government has previously overseen the mills’ clearance of Rs 35,116.06 crore during the 2021-22 season, Rs 33,007.95 crore in the 2020-21 season, Rs 35,898.85 crore in the 2019-20 season, Rs 33,048.06 crore in the 2018-19 season, and Rs 35,446.06 crore in the 2017-18 season. Including Rs 10,666.69 crore from previous seasons, the mills have so far cleared a total of Rs 2,10,537.97 crore.

According to the Indian Sugar Mills Association (ISMA), Uttar Pradesh is expected to surpass other states in sugar production as crushing is still ongoing in the region, whereas mills in Maharashtra ceased operations in March.

ISMA, an industry body representing private sugar companies, has revised its estimate for sugar production in the current season to 32.8 million tons, down from the previous estimate of 34 million tons, considering the decrease in Maharashtra’s output and a slight increase in Uttar Pradesh’s output.

Annual domestic sugar consumption is estimated to be around 27.5 million tons, and in the 2021-22 season, India produced 35.76 million tons of sugar.

Industry sources indicate that sugar production in the country has decreased by over 8 percent, reaching 32.1 million tons by May 15 in the current sugar season (October 2022-September 2023), compared to 34.92 million tons in the previous season.

At the national level, approximately 500 mills have ceased operations, while 37 factories are still in the crushing process as of May 15, including 16 mills in Tamil Nadu and 15 units in Uttar Pradesh. This indicates a lower sugar production for the current season compared to the same period last year when 116 mills were in operation.

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