Expect Current Season's Sugar Output At 270 Lakh Tonnes: ISMA; No Change in Ethanol Procurement Prices

ISMA had estimated a production of 270 lakh tonnes for the current season. However, the gur and khandsari manufacturers shut their operations in U.P very early because of the lock down, because of which a substantial quantity of sugarcane got diverted to the sugar mills therein. Government has also clarified that there will be no change in ethanol procurement prices.

Source: ET| 03 Jun, 2020 | 11:12 AM

isma1

Sugar production in the country during the current sugar season (October 2019 to September 2020) is expected to be 270 lakh tonnes, which will be about 60 lakh tonnes less than the previous season.

sugar production

In a statement on Tuesday, the Indian Sugar Mills’ Association said mills had so far produced 268.21 lakh tonnes of sugar between October and May. This is 59.32 lakh tonnes lesser than that produced during the same period last sugar season.

The Association earlier estimated the current season production to be 265 lakh tonnes. However, the gur and khandsari manufacturers, mainly in U.P., stopped operations early because of the lockdown and a substantial quantity of sugarcane was diverted to the sugar mills. Hence, mills are expected to produce another 5-6 six lakh tonnes of sugar, taking the total estimate to 270 lakh tonnes. This will still be about 60 lakh tonnes lower compared to the 2018-2019 season.

ad
ADVERTISEMENT

With relaxations in lockdown, demand for sugar is picking up and is expected to rise this month. “Along with the summer demand, sugar mills may be able to sell the entire June quota, along with the carry forward from May,” the Association said. Total sales in the domestic market this season is likely to be about 25.5 lakh tonnes, or about five lakh tonnes less than last year. The closing balance at the end of current season, earlier estimated to be about 100 lakh tonnes, may be higher at about 115 lakh tonnes.

dcm

ADVERTISEMENT

Meanwhile, the OMCs have on 1st June, 2020, floated their 3rdround of Expression of Interest (EOI), inviting further bids from ethanol producers for another 99 crore litres of ethanol in the current year 2020-21, for supplies from 1st July to 30thNov 2020.

There is no change in the ethanol procurement prices to what was approved by the Govt. in Aug 2019, thereby confirming that there will be no changes in the ethanol procurement prices or in the ethanol blending policy with petrol. In other words .