Sugar output in India down by 20% at 258 lt till April 30: ISMA

Sugar mills in the country have so far produced 258 lakh tonnes (lt) of sugar, nearly 20 per cent lower than the 321.71 lt produced till April 30 last year, the Indian Sugar Mills Association (ISMA) said on Friday.

Souce: ISMA| 05 May, 2020 | 11:12 AM

sugar

India’s sugar production has declined nearly 20 per cent in the seven months of the ongoing crushing season compared to the corresponding period last year, however, over 100 sugar mills are still in operation.

Sugar mills in the country have so far produced 258 lakh tonnes (lt) of sugar, nearly 20 per cent lower than the 321.71 lt produced till April 30 last year, the Indian Sugar Mills Association (ISMA) said on Friday.

However, as compared to 90 sugar mills which were crushing sugarcane on April 30, 2019, 112 sugar mills are crushing sugarcane on April 30 this year.Capture

The sugar mills of Uttar Pradesh, the largest sugar producer in the country, have produced 116.52 lakh tonnes of sugar as on 30th April 2020, which is 3.72 lakh tonnes higher than the production of 112.80 lakh tonnes in the corresponding date last year. Mills in Karnataka produced 33.82 lt of sugar, which is nearly 5 lt lower than last year. Cumulative sugar production from other States was at 47 lt.

In Maharashtra, sugar production till April 30, 2020 was 60.67 lakh tonnes, compared with 107.15 lakh tonnes produced last year in the same period, almost 46.5 lakh tonnes less than last year.

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The trade body also said there is an increase in sugar offtake in the last week of April with traders coming forward to refill the pipeline which is almost dry currently.

Surge in demand is expected

“It is generally expected that sugar demand will increase as soon as the lockdown is withdrawn, especially because of demand from the traders to refill the pipeline, which is almost dry, and also because of the rise in consumption coming up due to summer demand for beverages, ice creams, juices, etc,” ISMA said.

On domestic sales, ISMA said mills sold 10 lt more sugar during the first five months of sugar season (October to September).

Mills in Uttar Pradesh produced 116.52 lt of sugar till April 30 as against 112.80 lt in the same period last year, while sugar production in Maharashtra was 60.67 lt (107.15 lt).

Across the country, 112 mills are still crushing sugarcane, ISMA said. It said the mills have so far shipped 35 lt of sugar. Besides, contracts for sugar exports are being signed for various destinations, with major quantities being signed for shipments to Indonesia and Iran. Similarly, the government has re-allocated export quota for 3.53 lt – surrendered by some mills – to other mills.

According to ISMA, the government has allowed extension of time to sign contracts for exports and despatches up to June 30, but has said that thereafter MAEQ (Maximum Admissible Export Quantity) would be deducted from mills that do not export, and will also penalise them by making them ineligible for buffer subsidy.