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India’s sugar output may fall by 21.5% to 26 million tonnes for 2019-20: ISMA

06 Nov 2019 Evaluate

The Indian Sugar Mills Association (ISMA) has pegged the country’s sugar output lower by 21.5% to 26 million tonnes for the marketing year 2019-20 (October-September) over corresponding period of last year, considering possible fall in cane acreage in Maharasthra and Karnataka as well as diversion to ethanol manufacturing. In July, the ISMA had made a preliminary estimate of 28.2 million tonnes of sugar production for the ongoing marketing year. It said mills will soon commence crushing operation, and added that a better picture would emerge once the crushing starts fully and actual trend of yields and sugar recoveries becomes available.

As per the industry body, mills produced 33.16 million tonne of sugar during the 2018-19 marketing year, of which sales were 25.5 million tonne. The crop in the two main sugarcane-growing states, Maharashtra and Karnataka, which contribute around 35-40 percent of the country's sugar, have been adversely impacted due to various reasons. Total cane acreage is estimated to be lower by 12% to 48.31 lakh hectare this year from 55.02 lakh hectare a year ago.

Production in Uttar Pradesh, the country's largest sugar-producing state, is estimated to be 12 million tonne in 2019-20, more or less at the same level as 11.82 million tonne last year, despite slight fall in cane acreage. However, in Maharashtra, sugar production is estimated to drop by almost 40% to around 6.2 million tonne in 2019-20 as against 10.72 million tonne in 2018-19. Floods affected cane-growing areas such as Kolhapur, Sangli, Satara and Pune in the August-September 2019 period.

Due to water logging in cane fields for long duration, some of the cane has been destroyed completely, while some areas have been partially affected in terms of yield and recovery. Hence, cane area in Maharashtra this year has further come down to 7.76 lakh hectare from the level it was reported about four months ago. It is 33% lower than last year's acreage of 11.54 lakh hectare. Similarly, in Karnataka, sugar production is estimated to be around 3.2 million tonne in 2019-20 from 4.43 million tonne in 2018-19 due to fall in cane acreage by 21 percent.

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