ISMA lifts sugar output projection to 26.5 million tonnes for 2019-20

26 Feb 2020 Evaluate

Indian Sugar Mills Association (ISMA) has lifted the sugar output projection by 2% to 26.5 million tonnes (MT) for ongoing 2019-20 marketing year. The Industry body in November, 2019 had estimated the sugar production to be at 26 MT for the 2019-20 marketing year (October to September) counting on dip in sugarcane crop in key growing states, compared with 33.16 MT during the 2018-19 marketing year.

As per the second estimate, Uttar Pradesh the country's largest sugar-producing state is likely to attain yield of 11.8 MT similar to what the state had produced in 2018-19, and it expects higher yield from districts like Kolhapur, Satara, Sangli and Pune. Moreover, other states including Tamil Nadu, Gujarat, Andhra Pradesh and Telangana, Bihar, Punjab, Haryana, Madhya Pradesh, Chattisgarh, Odisha and Uttarakhand are collectively expected to produce about 5.2 MT this year.

At present, about 17 MT of sugar has been manufactured by mills till February 15. On ethanol supply for blending with petrol, ISMA said 61.63 crore litres of ethanol made from B-heavy molasses and 10.60 crore litres ethanol made from sugarcane juice have been finalized from the first tender. Another tender is under finalization and is expected that some more ethanol supplies would be contracted, including ethanol from B-heavy molasses and sugarcane juice.

The industrial body also foresees that the country might hold 10 MT of closing stocks this year. While, last marketing year the government had 4 MT buffer stock of sugar, and a repeat of the same will make net available sugar balance for market sale to be around 6 MT.

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