Sugar production update and estimate review for 2021-22 (as of 6th July)

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13 July 2022, NewDelhi: During 2021-22 SS, 522 sugar mills started their crushing operations as against 506 mills which operated last year i.e., 16 more mills operated this year.  

352.37 lac tons of sugar have been produced till 6th June 2022, as against 307.41 lac tons produced last year by 6th June 2021.

As on 6th June 2022, 493 mills have stopped crushing and 29 sugar mills in the country were still crushing, most of them in Maharashtra. As compared to that, only 4 mills were operating last year on the same date. 

The Committee of ISMA, having sugar producers from across the country, in its meeting held on 8thJune, 2022 noted that the sugar production for the country upto 6th June, 2022. 

The Committee discussed that since special season is in progress in Tamil Nadu and Karnataka and cane availability in these states is good for the remaining period upto end of current season i.e. 30thSeptember, 2022, another about 6 lac tons of sugar is expected to be produced collectively by these states. 

Accordingly, ISMA has revised its all-India sugar production estimate for 2021-22 SS to 360 lac tons after considering diversion of 34 lac tons of sugar equivalent into ethanol. It is notable that last year the country produced 311.92 lac tons of sugar after diversion of about 20 lac tons of sugar for production of ethanol.

On the export front, it is reported that around 94-95 lac tons of export contracts have already been entered into so far. Out of that, about 86 lac tons is reported to have been physically exported till end of May, 2022. Recently, Government has capped sugar exports at 100 lac tons for the current season.

As per reports from sugar mills and estimations made by ISMA, sugar sales by end of April, 2022 have been estimated at 160.05 lac tons, as against 152.61 lac tons in the corresponding period last year, which is higher by about 7.5 lac tons. Further, domestic sugar sales quota released by the Government upto June 2022 is higher by 5.5 lac tons as against corresponding period last year. Considering the above, ISMA estimates domestic sugar consumption in the current season to be at 275   lakh tons against 265.55 lacs of consumption last year.

Considering an opening stock of about 82 lac tons as on 1st October 2021, domestic consumption of 275  lac tons, sugar exports of 100   lac tons and the estimated sugar production of 360 lac tons, the closing stock as on 30th September, 2022 is expected to be at 67  lac tons, which would be sufficient for 3 months of domestic consumption.   

As is the practice, ISMA will obtain satellite images of the sugarcane area across the country in latter part of June 2022 to get an idea of the acreage under sugarcane available for harvesting next year. Accordingly, ISMA will discuss the same in its meeting attended by members from across the country, and in July,2022 make its preliminary estimates of sugarcane availability and sugar production for 2022-23 sugar season.

Also Read: Andhra Pradesh to be included under PMFBY crop insurance scheme

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