New Delhi, July 25 (ANI): According to investment information firm ICRA, in Uttar Pradesh, the sugar production is likely to decline by 3 per cent to 12.3 million tonnes in SY21. In SY20, the production was higher by around 0.5 million to 0.6 million tonnes than anticipated, because sugarcane which was generally used by the local gur and khandsari manufacturers got diverted to sugar mills with operations prematurely shut due to the lockdown.
In Maharashtra, sugar production is expected to increase by 64 per cent at 10.1 million tonnes and in Karnataka by 26 per cent to around 4.3 million tonnes in SY21.
Speaking about India then the domestic sugar production is likely to increase by 12.1 per cent to 30.5 million tonnes in SY21 after adjusting for the impact of diversion of B-heavy molasses and sugarcane juice for ethanol manufacture.
“This increase in production is majorly driven by the increase in cane availability in Maharashtra and Karnataka in SY21,” said Sabyasachi Majumdar, Senior Vice President and Group Head at ICRA Ratings.
The closing stocks for SY20 at 11 million to 11.5 million tonnes after considering the consumption of 25 million tonnes (decline of 3.8 per cent year-on-year) and exports of 5 million to 5.5 million tonnes. This along with higher sugar production for SY21 is likely to result in domestic sugar availability of around 42 million tonnes.
In light of continuing sugar surplus scenario in the domestic market, continued government support will be critical for industry’s profitability.
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