Sugar output down 17% on late start of factories in some states: ISMA

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Sugar production in the current sugar season that started from October, has declined 17 per cent to 61.39 lakh tonnes (lt) till December 15 from 74.05 lt in the year-ago period, mainly due to a delayed start in some states and a drop in output in Maharashtra, according to Indian Sugar and Bio-Energy Manufacturers Association (ISMA). The production data excludes the diversion of sugar (in terms of sucrose) towards ethanol.

But, according to the National Federation of Cooperative Sugar Factories (NFCSF), which also released the production update Monday, the output until December 15 was 60.85 lt against 74.20 lt year-ago.

This year, sugar factories in Karnataka started late by 7-12 days while mills in another major state Maharashtra started late by 15–20 days, as compared to last season, ISMA said in a statement Tuesday.

As per ISMA data, sugar production in Uttar Pradesh increased to 23.04 lt from 22.11 lt. But, the output has declined to 16.78 lt from 24.45 lt in Maharashtra and to 13.85 lt from 17.56 lt in Karnataka. Uttar Pradesh, Maharashtra and Karnataka are the top three sugar producers in the country.

But NFCSF data show that sugar production in Uttar Pradesh is at 22.95 lt, which is marginally above year ago’s 22.65 lt. The cooperative body also said that output has declined to 16.80 lt from 24.85 lt in Maharashtra and to 13.50 lt from 17.50 lt in Karnataka.

As of December 15, sugarcane crushing and sugar production is in full swing in 472 sugar factories across the country which have crushed 720 lt of sugarcane, the cooperative sugar body said.

The average sugar recovery has been 8.46 per cent so far, as against 8.72 per cent year-ago. As compared to last year, about 131 lt of lower sugarcane has been crushed this year due to crushing could not have started in 29 factories.

“Considering the present climate of severe cold and the bright sunlight throughout the day, about 280 lt of net sugar production (excluding diversion to ethanol) is expected by the end of the season, which is estimated to be 39 lt less than the net sugar production of 319 lt last year,” NFCSF said.

President of NFCSF Harshvardhan Patil said that among the major pending issues of the sugar industry, increase in the minimum selling price of sugar and increase in the purchase price of ethanol produced by the sugar industry, have been put on fast track due to the continuous follow-up by the federation and he expects a decision in the next two to three weeks.

However, it is expected that the appropriate decision will be taken by the government regarding sugar exports, after reviewing the production at the end of January 2025, Patil added.

ISMA said that “this year sugar diversion towards ethanol is estimated to be higher at around 40 lt against around 21.5 lt diverted last year.”