New Delhi Witnesses a Slight Decrease in Sugar Output

In New Delhi, experts predict a decrease in sugar production for the 2023-24 season. Consequently, the All India Sugar Traders Association (AISTA) has updated its forecast. It now expects 320 Million tonnes of sugar, a significant revision from 3.10 million tonnes. Importantly, Maharashtra and Karnataka are set to see production increases. However, Uttar Pradesh may experience a noticeable decrease in output.

AISTA Adjusts Production Estimates

Furthermore, AISTA raised its sugar production estimate by 0.4 million tonnes. The new estimate is 32 million tonnes for this season. Even with this increase, production will still fall short of last year's 32.9 million tonnes. On the bright side, Maharashtra and Karnataka offer hope with their higher production. Yet, unfortunately, Uttar Pradesh is likely to see a decline.

Regional Production Variations

Specifically, officials project Maharashtra's sugar production to reach 10.8 million tonnes. This is up from an earlier estimate of 9.6 million tonnes. Conversely, Uttar Pradesh's production may drop to 10.6 million tonnes, down from 11.7 million tonnes. Meanwhile, Karnataka shows promise with an increase of 0.4 million tonnes, totaling 5.1 million tonnes.

Insights from AISTA's President

Moreover, Prafulla Vithalani, AISTA's President, shared insights on the new estimate. This update came from a recent crop committee meeting. Remarkably, this marks the fourth year of accurate initial estimates. States like Punjab, Haryana, Andhra Pradesh, Telangana, and Uttarakhand are set to produce 3.3 million tonnes. This is an increase from the earlier 3.1 million tonnes estimate.

Ethanol Blending Achieves Milestone

Interestingly, India achieved an 11.60 percent ethanol blending rate in the first four months of 2023-24. This period started in November. Thanks to the supply of 1.8 billion liters of molasses from November to February, the government's ethanol blending target in petrol was met. The goal is to blend 15 percent ethanol in petrol by the end of 2023-24. This effort is a crucial step toward the 2025 goal of 20 percent ethanol blending.

Data shows that sugar mills and distilleries supplied 57 percent of the contracted ethanol. Notably, over 74.5 percent of this came from sugarcane molasses. Additionally, grain-based distilleries contributed about 42 percent. Together, sugar mills and distilleries aim to supply 5.4 billion liters of ethanol in 2023-24. So far, 2.98 billion liters are under contract, with 1.8 billion liters already supplied.