Indian sugar season 2021-22 : Latest Update by ISMA

According to the Indian Sugar Mills Association, in the current season, 521 mills operated against 506 mills which operated last season. As on 15th May, 2022, 405 mills had closed their crushing operations while 116 sugar mills were still operating in the country. However, in the last season 2020-21, 461 mills had closed their crushing operations and only 45 mills were operating on the corresponding date.

The summary of sugar production vis a vis last year has been tabulated as below. The table also indicates state wise estimated sugar diversion towards production of ethanol for the current year as well as last year. In this way this table gives clear idea of actual sugar production in both the years with and without diversion into ethanol. The following table is self-explanatory:

Sugar Production as on 15th May (In lac tons)
Sl.No.
State
No. of Working Factories Net Sugar Production (without Diversion) Estimated Sugar Diversion into ethanol Sugar Production (after Diversion)
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
1 Uttar Pradesh 20 21 113.95 115.6 12.5 6.9 101.45 108.7
2 Maharashtra 69 5 146.72 113.28 11.29 7.12 135.43 106.16
3 Karnataka 0 0 65.89 47.5 7.37 5.02 58.52 42.48
4 Tamil Nadu 15 11 8.99 6.53 0.19 0.08 8.8 6.45
5 Gujarat 7 2 12.09 10.22 0.14 0.05 11.95 10.17
6 Others* 5 6 35.26 31.71 2.58 0.9 32.68 30.81
Total 116 45 382.91 324.83 34.08 20.07 348.83 304.77
Difference 58.07 14.01 44.06
*Others include – A.P., Telangana, Bihar, Punjab, Haryana, Rajasthan, M.P., Chhattisgarh, Uttarakhand & Odisha

The net sugar production without diversion into ethanol is higher by 58.07 lac tons as compared to last year i.e. higher by about 18%. However, in terms of actual sugar produced after considering diversion for production of ethanol, the difference in sugar production is about 44.06 lac tons, owing to higher estimated sugar diversion by about 14 lac tons into ethanol this year.

Most of the operating factories are expected to close by the end of this month. However, a few mills may operate till first fortnight of June, 2022.

Further, Karnataka and Tamil Nadu have a special season also, which commences in June / July and runs upto September. Last year both these states collectively produced 4.36 lac tons of sugar in the special season.

As per port information and market reports, over 85 lac tons of contracts for export of sugar have already been entered into so far. Out of this, around 71 lac tons of sugar have been physically exported out of the country till end of April 2022. Compared to this 43.19 lac tons of sugar was exported during the corresponding period last year. Further, it is also reported that another about 8 -10 lakh tons of sugar is in pipeline to be physically exported in May 2022. ISMA expects over 90 lac tons of export in the current season against 71.91 lac tons exported in last season.

As per information furnished by mills and estimations made by ISMA, total sales in the month of April,2022 has been estimated as 23.91 lac tons. Total sales in the current season upto April, 2022 are estimated at 160.05 lac tons against 152.61 lac tons during the same period last year. This would mean that sales in the current year upto April,2022 are higher by about 7.5 lac tons or about 5% higher than the last year corresponding period.

Meanwhile, IMD, in its statement has said that Southwest monsoon has advanced further into parts of South Bay of Bengal, Andaman Nicobar Islands and the Andaman Sea. Accordingly, conditions are favourable for further advancement of SW monsoon. The agency had earlier predicted normal SW monsoon for India this year.

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