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India's sugar production likely to remain flat at around 310 lakh tonnes in next marketing year: ISMA

15 Jul 2021 Evaluate

Industry body -- Indian Sugar Mills Association (ISMA) has said that India's sugar production is likely to remain flat at around 310 lakh tonnes in the next marketing year starting October on higher diversion of cane juice for ethanol manufacturing. Sugar marketing year runs from October to September. It said the total area under coverage for sugarcane is estimated to be around 54.55 lakh hectares in 2021-22 marketing year, which is about 3 per cent higher than the cane area of around 52.88 lakh hectares in the current year. In the current 2020-21 marketing year, sugar production has touched 307 lakh tonnes so far and about 2 lakh tonnes more sugar is expected to be produced in the special season in Tamil Nadu and Karnataka. This will take the total sugar production in 2020-21 to about 309 lakh tonnes.

The association has estimated that the diversion of cane juice and B-molasses to ethanol will reduce sugar production by about 34 lakh tonnes in the 2021-22 marketing year, as compared to about 21 lakh tonnes estimated to be diverted in the ongoing marketing year. However, ISMA said it will get a better idea of this diversion once the tenders happen and bids are given by millers for ethanol supplies, which will be sometime in October. The preliminary estimate was finalised at a meeting held by ISMA on Wednesday wherein representatives from sugar-producing States from across the country were present.

According to ISMA, Uttar Pradesh is estimated to have a sugarcane area of 23.12 lakh hectares, as against 23.07 lakh hectares in 2020-21. The estimated sugar output in UP, without considering diversion for production of ethanol in 2021-22, is expected to be around 119.27 lakh tonnes. Maharashtra's cane area has gone up by about 11 per cent from 11.48 lakh hectares in 2020-21 to 12.75 lakh hectares in 2021-22. The estimated sugar production is expected to be around 121.28 lakh tonnes in 2021-22, without diversion into ethanol. Sugarcane area in Karnataka is slightly higher in 2021-22 at 5.22 lakh hectare as against 5.01 lakh hectare in 2020-21.

The sugar output in 2021-22 is therefore estimated to be around 48.74 lakh tonnes, without considering any diversion of sugar into ethanol. The remaining states are expected to collectively produce about 54.60 lakh tonnes of sugar in 2021-22 without diversion into ethanol. The total sugar production is estimated at nearly 344 lakh tonnes during the 2021-22 marketing year, without the diversion of cane juice and molasses into ethanol. In the current season, till July 5, the total contracted quantity of ethanol is 333 crore litres.

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