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India’s sugar output rises 22% to 5.6 LT so far this season

19 Nov 2014 Evaluate

India’s sugar output stood at 5.6 lakh tonnes (LT) so far in the 2014-15 season, as per data compiled by industry body ISMA. This is an increase by 22% compared to the total sugar production of 4.62 LT during the same period of the 2013-14 season (October-September).  ISMA has estimated the sugar production at 250-255 LT this season compared to the government’s estimate which pegged overall sugar output at 250.5 LT for this season. The estimates are higher than 244 LT of sugar produced in the 2013-14 season. The domestic requirement is around 247 LT.

The mills in Uttar Pradesh are expected to begin the crushing operation by the end of this month. The mills had initially threatened not to start operations this season. It is now expected that they will begin their factories as the state government has kept the cane price unchanged at the last year’s level. The state government has also announced some tax concessions and financial assistance to sugar mills. Out of the total 509 sugar mills around 141 mills were operating till November 15 of this season, as against 108 mills in the same period last season.

In the ongoing 2014-15 season, since there would be an estimated surplus sugar of 20 LT the industry body is awaiting government’s nod on continuing export subsidy for raw sugar and also help mills to convert surplus sugar into ethanol with incentive.  The opening stock of sugar was around 75 LT as on October 1 of this season. India has exported 21.17 LT in the 2013-14 season out of which, 12.12 LT was raw sugar and 9 LT white sugar.

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