India’s sugar production jumps 25% to cross 2 MT till Nov 15

With the sugar mills starting early in the Southern and Western regions, India’s sugar production has jumped by 25 per cent to breach the 2 million tonne (MT) mark till November 15 in the current 2021-22 cane crushing season.

According to the Indian Sugar Mills Association (ISMA), sugar output has touched 2.1 MT this year compared to 1.68 MT till November 15, 2020. Against the operation of 289 sugar mills last year, 308 factories have already started functioning this season (Oct-Sep), which stoked higher production.

However, the crushing season was delayed in Uttar Pradesh (UP), the country’s top sugar producer, by a few days due to unseasonal rains in the third week of October 2021. As such, the state logged a dip of 28 per cent to 288,000 tonnes in output vis-à-vis 400,000 tonnes in 2020-21. This year, 74 mills are operating compared to 76 mills, which were operational till November 15 last year.

In contrast, crushing in the other two major states Maharashtra and Karnataka commenced well in time in the second week of October 2021, thus resulting in robust production.

In Maharashtra, 134 sugar mills have commenced operations, producing 891,000 tonnes of sugar compared to 120 mills operating in the corresponding period last season and posting output of 600,000 tonnes.

In Karnataka, 63 mills were in operation till November 15 and produced 762,000 tonnes compared to 60 mills which were operating last year with the production of 566,000 tonnes.

Besides, in the states of Gujarat, Uttarakhand, Bihar, Haryana, Madhya Pradesh, Tamil Nadu and Telangana, about 37 factories have commenced operations and they have together produced 150,000 tonnes so far.

As per port information and market reports, 2.5 MT of sugar contracts have been entered into so far. Of this, 270,000 tonnes have been physically exported in October 2021 compared to 196,000 tonnes in the corresponding month last year.

“It is reported that another 200,000 tonnes of sugar is in the pipeline to be physically exported in November 2021,” ISMA said in a press communiqué.

With an opening balance (OB) of sugar for 2021-22 of 8.2 MT as on October 1, 2021 and an estimated sugar production of 30.5 MT, India will have another surplus year and need to continue to export 6 MT of surplus sugar during the current season too.

Against an annual requirement of 4.59 billion litres (BL) of ethanol by the oil marketing companies (OMC) for 2021-22 ethanol supply year, 4.14 BL worth of bids has been submitted in the first expression of interest (EoI) invited by the oil companies. “The bids are under examination and agreements would be signed soon,” ISMA informed.