According to the Indian Sugar Mills Association, sugar production till 15th November, 2020 in the current season 2020-21 is 14.10 lakh tonnes, which was 4.84 lakh tonnes last year on 15th November 2019. As compared to 127 sugar factories which were crushing sugarcane last year on 15th November, 2019, 274 sugar mills are crushing sugarcane on 15th November, 2020 this year.
In Uttar Pradesh, 76 sugar mills have started their crushing operations for this season and they have produced 3.85 lakh tonnes of sugar by 15th November 2020. Last year in the same period, 78 mills were in operation and they had produced 2.93 lakh tonnes till 15th November 2019.
Unlike last year, owing to very good rainfall and sufficient water availability in reservoirs in Maharashtra and Karnataka, as also better cane availability due to higher cane acreage and improved yield per hectare, crushing season commenced well in time during the last week of October’ 2020.
In Maharashtra, 117 sugar mills have started crushing operations as on 15th November 2020, while last year season commenced very late in 4th week of November 2019 due to drought and lesser cultivable area by almost 48% as compared to current year. Till 15th Nov. 2020, sugar production in the State was 5.65 Lakh tonnes.
Similarly in Karnataka, 49 sugar mills were in operation as on 15th November 2020 and have produced 3.40 lakh tonnes, as compared to 34 mills which were operating and had produced 1.43 lakh tonnes last year upto the corresponding date.
In Gujarat 14 sugar mills were crushing on 15th November, 2020 and they have produced 80,000 tonnes of sugar. Last year on 15th November, 2019, 4 mills were in operation and they had produced 2000 tonnes of sugar.
Among the remaining States like Uttarakhand, Bihar, Haryana, Madhya Pradesh, Tamil Nadu, Andhra Pradesh and Telangana, about 18 factories have commenced their crushing operations and they have together produced 40,000 tonnes of sugar till 15th November, 2020.
With an OB of sugar for 2020-21 of 106.4 lakh tonnes as on 1st October,2020 and an estimated sugar production of 310 lakh tonnes, India will have another surplus year and need to continue to export about 60-70 lakh tonnes of the surplus sugar out of the country during 2020-21 SS.
Policy decisions regarding Export policy along with export subsidy for the sugar year 2020-21 and creation of buffer stock along with buffer subsidy are still awaited from the Government. During the last season 2019-20, about 2 Lakh tonnes of sugar had already been shipped out for exports on the corresponding date.
During the current season 2019-20 (Dec – Nov), the Ethanol supplied as on 9th November’ 2020 is reported to be at 160.23 Cr. ltr, which is equivalent to a blend of 5%.
For the year 2020 – 21, Oil Marketing Companies (OMCs) have allocated about 262.27 Cr ltrs against offers received for about 322.57 Crore L of ethanol from sugar mills. However, total requirement as per tender floated by OMC’s is about 457.64 Cr ltrs. This could mean a blend of about 7-8%, depending on the total fuel demand.
Allocated quantity of Ethanol indicates about 20 Lakh tonnes diversion of sugar by means by of Ethanol produced from B heavy molasses and sugarcane juice as also estimated by ISMA in its 1st advance estimates of sugar production released in October’ 2020.
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