New Delhi: The sugarcane crushing season in India is underway, and the first fortnightly report from the National Federation of Cooperative Sugar Factories Limited (NFCSF) shows a total of 325 mills have commenced crushing operations, compared with 144 mills during the corresponding period last year. As a result, cane crushing has reached 128 lakh metric tonnes (LMT), up from 91 LMT in the same period last year. New sugar production stands at 10.50 LMT (against last year’s 7.10 LMT), while the average sugar recovery rate has reported to 8.2% (against last year’s 7.80%).
India’s new sugarcane crushing and sugar production season traditionally begins on 1st October, following the withdrawal of the monsoon by the end of September. But this year, it is witnessed that the monsoon has extended it’s stay into October & in some parts of Maharashtra into November. The experts call this late downpour as “Retreat Rains’. On one hand these unprecedented heavy rains in parts of Marathwada region of Maharashtra have already caused havoc & have snatched away the ready to harvest khariff crops like Soyabeans, Sorghum, Pulses, Maize, Vegetables & Orchards, however, the sugarcane standing in the field, though expected to gain mass weight; cannot be harvested in time due to wet fields. In light of this situation, the commencement of new crushing season has been delayed. Add to it the cane price agitations in Karnataka & Maharashtra have considerably slowed down the cane crushing & new sugar production across India. The delayed start to the previous season was largely due to the Maharashtra elections, which pushed operations to late November.
Accoridng to the NFCSF, irrespective of delayed start of new crushing season, it is estimated that the gross new sugar production will be 350 LMTs with major contributors being Maharashtra (125 LMTs), Uttar Pradesh (110 LMTs) & Karnataka ( 70 LMTs). After projected diversion of 35 LMTs sugar for ethanol production & expected domestic consumption of 290 LMTs & with opening stock of 50 LMTs, there is a clear tradable surplus of 20-25 LMTs, out of which government has rightly allowed 15 LMTs for exports. This timely advance announcement will help to stabilize market sentiments. The export opportunity window of January to April 2026 just 2 months away, India can expect another stranch of 10 LMTs for exports in the latter part of the season. This will partially give relief to the sugar millers who are currently in a semi-depression state due to non revision of Sugar MSP since last 6 years and ethanol purchase prices remaining stagnant for last 3 years. Both these revenue earning avenues being blocked, the sugar industry has no clue from where they can pay cane price, meet operational costs & clear vendor dues.
“We, at National Cooperative Sugar Federation have farmer’s interest at paramount priority. Farmers getting ever increasing FRP & their expectation of higher cane price is logically right & we completely support it being farmer centric organization. But it is also equally logical to help sugar millers to generate adequate revenue by way of selling sugar at increased MSP & higher Ethanol purchase prices in line with rise in raw material (Sugarcane) prices, ” the cooperative sugar body said in a statement.
“Parallelly we appeal our fellow cane growing famers to whole heartedly adopt integration of Artificial Intelligence [AI] in sugarcane farming which has successfully demonstrated increased yield of 40% at reduced cultivation cost of 30%. With All India area under sugarcane planting having been plateaued at 55-57 lakh hectares & cane yields stagnated around 75-77 tons/hectares, there is a dire need for India, the second largest sugar producers & the single largest sugar consumer in the world, to help itself to harvest higher cane at lower cost from limited area”, said Harshwardhan Patil, President of NFCSF.
Prakash Naiknavare, Managing Director of the Federation said that we at NCSF have three pronged focus viz. sugar MSP risen to atleast existing ex-mill realization pan India, upward revision in sugar based ethanol prices & increasing sugar based ethanol allocation in future cycles.
