Indian Sugar Production
According to the latest report by Indian Sugar Mills Association (ISMA), sugar mills across the country have produced 306.65 lac tons of sugar between 1st October 2020 and 15th June 2021. This is 35.54 lac tons higher than 271.11 lac tons produced at the same time last year. Only 5 mills are currently operating in the Country, which is similar to that operated last year on the corresponding date.
U.P. sugar mills have produced 110.61 lac tons of sugar as on 15th June’ 2021, which is 15.69 lac tons lower than the production of 126.30 lac tons produced by them last year on the corresponding date. Out of 120 mills which operated this year, 119 mills have ended their crushing and only 1 mill continue its operations, similar to which operated last year on the corresponding date.
In Maharashtra, crushing season had concluded by 31st May,2021 and the mills of the State have produced 106.28 lac tons of sugar, which is about 44.59 lac tons higher as compared to 61.69 lac tons produced in 2019-20 SS.
Likewise, in Karnataka, all the operating mills had closed their main crushing season by 15th April,2021 and have produced 41.67 lac tons of sugar as compared to 33.80 lac tons produced last year same period. However, one mill in South Karnataka has commenced its operation for special season. Last year during the special season, Karnataka mills had produced 1.14 lac tons of sugar.
As on date, in Tamil Nadu, out of 28 sugar mills which operated in this season, 3 mills are currently in operation for the special season. Till 15th June’ 2021, sugar production in the State was 6.70 lac tons, compared with 6.12 lac tons produced on the corresponding date last year. Of the 24 sugar mills, 4 mills were in operation as on 15th June 2020, last year. Last year, during the special season during June – September period, 2.0 lakh tons of sugar were produced by mills in Tamil Nadu.
The remaining States of Gujarat, Andhra Pradesh, Telangana, Bihar, Uttarakhand, Punjab, Haryana and Madhya Pradesh, Chhattisgarh, Rajasthan and Odisha have also concluded their crushing operations for the current season and have collectively produced 41.39 lac tons till 15th June, 2021.
Upcoming Sugarcane Crop
There is a lot of talk about sugarcane availability and higher sugar production in next season 2021-22 also. As is the practice, ISMA will obtain satellite images of the sugarcane area across the country in latter part of June 2021 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,2021 make its preliminary estimates of sugarcane availability and sugar production for 2021-22 sugar season.
Indian Sugar Exports
As per port information and market reports, about 58 lac tons of contracts for export of sugar against MAEQ of 60 lac tons of sugar for 2020-21 fixed by the Government, have already been entered into so far. Out of this, about 45.74 lac tons of sugar have been physically exported out of the country during Jan. 2021 and May, 2021, i.e. under the MAEQ export program for 2020-21 SS. It is also reported that another about 5 -6 lakh tons of sugar is in pipeline to be physically exported in June 2021. In addition to the above, the sugar industry had exported 4.49 lakh tons of sugar in Oct- Dec 2020 quarter against the MAEQ of last season 2019-20.
Domestic Sugar Sales
As per information furnished by mills and estimations made by ISMA, total sales in the month of May,2021 was recorded as 22.35 lac tons against the sales quota of 22 lac tons for the respective month. Total sales in the current season upto May, 2021 are estimated at 174.96 lac tons against domestic sales quota of 169 lac tons given by the Government. Last year, during the same period sugar sales were estimated at 166.40 lac tons as against sales quota of 161 lac tons. This would mean that sales in the current year upto May,2021 are 8.56 lac tons higher or about 5% higher than the last year corresponding period.
There is a misunderstanding in the market that demand of sugar has fallen in the last couple of months. It needs to be noted that sugar sales by sugar mills in March,2021 was 22.34 lac tons, in April,2021 it was 23.13 lac tons and now in May,2021, it was 22.35 lac tons. These figures of sales are as reported by the sugar mills from across the country. It is to be noted that as compared to the last season 2019-20, sugar mills have already sold 8.56 lac tons more in the current season and therefore as compared to full season of last year, when the sales were 253 lac tons, the sugar sales in the current year may cross the estimation of 260 lac tons.
In addition to higher domestic sales of 8 to 10 lac tons in the current year till the end of September,2021, over last season, sugar exports in the current year is expected to be around 70 lac tons, which gives the industry the confidence that the closing balance of September,2021 will be about 20 to 25 lac tons less than the closing balance of last season.