Sugar production falls by 23%

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19th May 2020, New Delhi: Sugar production has gone down by 23% for the period of 1st October 2019 to 15th May 2020. Sugar mills across the country have produced 264.65 lac tons of sugar between 1st October 2019 and 15th May 2020.  This is 61.54 lac tons less than 326.19 lac tons produced at the same time last year

However, as compared to 38 sugar mills which were crushing sugarcane on 15th May 2019, 63 sugar mills are crushing sugarcane on 15th May’ 2020 this year.

Uttar Pradesh sugar mills have produced 122.28 lac tons of sugar as on 15th May’ 2020, which is 5.48 lac tons higher than the production of 116.80 lac tons produced by them last year on the corresponding date. This production is the highest ever sugar production in the State, surpassing 120.45 Lac tons produced in 2017-18 SS.

In Maharashtra, sugar production till 15th May 2020 was 60.87 lac tons, compared with 107.15 lac tons produced in 2018-19 SS., almost 46.3 lakh tons less than last year. In the current 2019-20 SS, 145 mills have already closed their crushing operations in the State and only 1 sugar mill is operating, while last year on the corresponding date, crushing season had already concluded by 30th April’ 2019.

The remaining States of Gujarat, Karnataka, Tamil Nadu,, Andhra Pradesh, Telangana, Bihar, Uttarakhand, Punjab, Haryana and Madhya Pradesh, Chhattisgarh, Rajasthan and Odisha have collectively produced 81.5 lac tons till 15th May, 2020.

Diversion of excess sugarcane and sugar

Centre has urged the mills for diversion of excess sugarcane and sugar for production of fuel Ethanol as a long term solution for addressing the problem of excess sugar stock. It is already well accepted by the ISMA, as augmentation in Ethanol capacity for the upcoming years is at different stages of progress / implementation.

To increase the production of Ethanol in coming years the three stakeholders i.e. sugar mills, OMC’s and commercial banks should enter into a tripartite agreement for optimum utilization of the policies and incentives

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