Industry body -- Indian Sugar Mills Association (ISMA) has said sugar production on India is estimated to increase by 13 per cent to 31 million tonnes in the 2020-21 marketing season starting this month, on likely higher availability of sugarcane. It added that the output has been estimated after taking into account a likely diversion of about 2 million tonne of cane juice and B molasses for ethanol production. In the 2019-20 season (October-September), sugar production remained lower at 27.42 million tonnes and diversion to ethanol was about 0.8 million tonnes.
Since higher production is pegged for the 2020-21 season, ISMA said that India will need to continue to export about 6 million tonne of surplus sugar this season. After accounting for the reduction in sugar production due to diversion of cane juice and B-molasses to ethanol, ISMA estimates sugar production in 2020-21 at around 31 million tonnes of sugar. With higher availability of sugarcane and surplus sugar production, it is estimated that a larger quantity of cane juice / syrup and B-molasses will get diverted to ethanol. However, ISMA will get a better idea of this diversion once the tenders are called and bids are given by millers for ethanol supplies.
According to the first advance estimate, sugar production in Uttar Pradesh -- the country's largest sugar producing state -- is projected to be slightly lower at 12.45 million tonnes in the current 2020-21 season, as against 12.63 million tonnes last season. But the output in Maharashtra -- the country's second largest sugar producer -- is estimated to increase sharply to 10.80 million tonnes from 6.16 million tonnes in the said period on account of higher cane supplies in view of a 48 per cent increase in sugarcane area this year.
Similarly output in Karnataka -- the country's third largest sugar producing state -- is estimated to increase to 4.60 million tonnes this season from 3.49 million tonnes in last season on hopes of higher cane production due to 19 per cent increase in sugarcane area, thanks to normal southwest monsoon. Sugar production in Tamil Nadu is projected to be 7,51,000 tonne in 2020-21 season, more or less similar to that of the 2019-20 season, while in Gujarat it is expected to increase to 10,81,000 tonne from 9,32,000 tonne in the said period. The other states are expected to collectively produce about 33,28,000 tonne sugar in the 2020-21 season, almost at the same level as in the previous season.
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