Sugar production till May 31 at 268.21 lakh tonnes: ISMA

New Delhi: According to the Indian Sugar Mills Association (ISMA), sugar mills across the country have produced 268.21 lakh tonnes of sugar between 1st October 2019 and 31st May 2020.  This is 59.32 lakh tonnes less than 327.53 lakh tonnes produced at the same time last year.  As compared to 10 sugar mills which were crushing sugarcane on 31st May 2019, 18 sugar mills are crushing sugarcane on 31st May’ 2020 this year.

ISMA had estimated a production of 265 lakh tonnes for the current season. However, the gur and khandsari manufacturers shut their operations in U.P very early because of the lock down, because of which a substantial quantity of sugarcane got diverted to the sugar mills therein. That has resulted in extra sugarcane crushing by the mills in U.P and an additional around 5 – 6 lakh tonnes of sugar production is expected in the current season, mainly from U.P, and from a special season in Tamil Nadu and Karnataka, above the previous estimation of 265 lakh tons made by ISMA.

Therefore, the current year’s sugar production is expected to be around 270 lakh tonnes. This will be around 60 lakh tons of less production as compared to last year.

U.P. sugar mills have produced 125.46 lakh tonnes of sugar as on 31st May’ 2020, which is 7.65 lakh tonnes higher than the production of 117.81 lakh tonnes produced by them last year on the corresponding date. Out of 119 mills which operated this year, 105 mills have ended their crushing and only 14 mills continue their operations.

In Maharashtra, crushing season has concluded and the mills of the State have produced 60.98 lakh tonnes of sugar, which is about 46.2 lakh tonnes less as compared to 107.20 lakh tonnes produced in 2018-19 SS.

All the operating sugar mills in Karnataka have closed their crushing operations by 30th April’ 2020 and have produced 33.82 lakh tonnes of sugar. However, few mills might operate in the special season commencing July’ 2020. Last year during the special season, Karnataka mills had produced 1.05 lakh tonnes of sugar. Last year, sugar mills of Karnataka had produced 43.25 lakh tonnes on the corresponding date.

As on date, in Tamil Nadu, out of 24 sugar mills which operated in this season, 4 mills are currently in operation. Till 31st May’ 2020, sugar production in the State was 5.78 lakh tonnes, compared with 7.22 lakh tonnes produced on the corresponding date last year.  Of the 32 sugar mills, 29 mills had ended their operations and only 3 mills were in operation as on 31st May 2019, last year. Last year, during the special season, 2.13 lakh tons 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 collectively produced 42.17 lakh tonnes till 31st May, 2020.

Sugar mills in North India sold sugar as per their monthly quotas given for May, but the sugar mills in West and South India have a small quantity of unsold quota of May. The Government has extended the sale time of May quota and has released 18.5 lakh tons of monthly quota for June 2020.

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  1. As this year we have produced about 57-60 lakh tonne compared to 2019 . It will be helpful to neutralise buffer stock(causing psychological impacts on price).
    In my opinion due to lockdown the sale patterns will be late or deferred but entire north indian sugar business will be in benefits in two ways i.e first extra sugarcane availability (unexpected) .Second ,due to higher recovery/caping of sugar price.


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