Sugar Output Dips in India
Sugar production in India witnessed a slight decline, totaling 18.7 million tonnes during the initial four months of the 2023-24 season. The National Federation of Cooperative Sugar Factories Limited reports a decrease from the 19.3 million tonnes produced during the same period last season.
Projections for 2023-24 Season
Anticipated figures suggest a five per cent decrease in sugar production, with an expected yield of 31.4 million tonnes compared to the previous year's 33.1 million tonnes. This decline is attributed to reduced acreage and erratic rainfall patterns. It notably affects sugarcane growth in Maharashtra and Karnataka.
Consumption and Reserves
India's annual sugar consumption ranges from 285 to 290 million tonnes. Commencing in October, the 2023-24 sugar season began with stocks totaling 5.6 million tonnes. The Federation President highlights an expected production shortfall of 0.17 million tonnes compared to last year yet emphasizes a reserve of 7.5 to 8.0 million tonnes.
Regional Variations in Production
While Uttar Pradesh (UP) witnessed increased sugar production, Maharashtra and Karnataka experienced declines. UP's 120 operational mills crushed 57.4 million tonnes of sugarcane, yielding 5.8 million tonnes of sugar, marking an improvement from the previous year. Conversely, due to declining recovery rates, Maharashtra and Karnataka faced reduced sugar output.
Recovery Rates Across States
Uttar Pradesh recorded an improved average recovery rate of 9.7 per cent, up from 9.6 per cent last year, with the highest recovery rate reaching 10.1 per cent. Conversely, Maharashtra and Karnataka observed declines in recovery rates, dropping to 9.6 per cent and 9.8 percent, respectively.
Operational Mill Statistics
In Maharashtra, 207 mills are operational, compared to 206 last year. The crushing season is expected to conclude by mid-April, with a decrease in sugarcane crushing from 75.7 million tonnes last year to 67.6 million tonnes this season. Karnataka, with 65 operational mills, witnessed a decrease in sugar production from 3.9 million tonnes to 3.7 million tonnes compared to the previous year.
Ethanol Production and Future Requests
The Federation urges the government to allocate 1.5 million tonnes of sugar for ethanol production to alleviate financial constraints. The country boasts approximately 51.7 million tonnes of sugar, with ongoing milling operations.
Conclusion
In summary, while UP sees an upward trend in sugar production, Maharashtra and Karnataka face setbacks. Recovery rates fluctuate across states. As the sugar season progresses, strategic measures are imperative to address production challenges. This will assist in sustaining industry stability.
