Sugar production reaches 329.60 lakh tonnes, El Nino to hit output in coming year
According to the data of the sugar industry, the country's sugar production till June 15, 2023, is 24.60 lakh tonnes less than the production of the same period last year. At the same time, it is estimated to be 26.55 lakh tonnes less than last year in the entire season. Along with this, in the coming year 2023-24, sugar production in Maharashtra, one of the country's two largest sugar producing states, may fall as sugarcane production may be adversely affected by the lack of rainfall due to El Nino
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During the current sugar season (October, 2022 to September, 2023) till June 15, sugar production in the country has reached 329.60 lakh tonnes. In the same period last year, sugar production in the country was 354.20 lakh tonnes. As far as production is concerned for the whole year, the industry has estimated it to reach 333.20 lakh tonnes this year, against 359.75 lakh tonnes last year.
According to the data of the sugar industry, the country's sugar production till June 15, 2023, is 24.60 lakh tonnes less than the production of the same period last year. At the same time, it is estimated to be 26.55 lakh tonnes less than last year in the entire season. Along with this, in the coming year 2023-24, sugar production in Maharashtra, one of the country's two largest sugar producing states, may fall as sugarcane production may be adversely affected by the lack of rainfall due to El Nino.
Prakash Nayakanavare, Managing Director of National Federation of Cooperative Sugar Factories Limited (NFCSF), gave such indications through a presentation at the Governing Council meeting of Vasantdada Sugar Institute recently.
In his presentation, Nayakanavare said that the US National Oceanic and Atmospheric Administration (NOAA) in its latest report has expressed concern about India's monsoon pattern. According to this, in the last three years, due to La Nina, there has been better rainfall, but now the effect of El Nino has come and in the last 70 years, due to El Nino, India has to face many droughts. He said that due to El Nino in 2009, the monsoon in India was adversely affected and the rainfall level in the country had gone to the lowest level in 37 years.
70% of India's rainfall occurs during the monsoon and this directly affects the production of most crops. If the monsoon is deficient, the sugarcane crop due for crushing from October, 2023 may get affected due to deficient rains.
Regarding the sugar industry, he said that India had to import sugar in 2009 and the global sugar prices were very high at that time. At the same time, in this situation, the weight of sugarcane and the recovery of sugar in it can also be adversely affected. Presently the water level in the reservoirs is 30 per cent. If the rainfall is less, then there may be a change in the priority regarding the use of water and in that case the availability of water for irrigation will be affected.
Nayakanavale indicated that in this situation, while there may be a shortage of sugarcane as a raw material for the operation of sugar mills, the production of distilleries that produce ethanol along with sugar may also be affected.
Thailand which is third largest exporter of sugar after Brazil and India is also in a situation of decline in the production of sugar, whose prices continue to rise in the global market.
As far as sugar production is concerned in the current year, Uttar Pradesh has produced the maximum 105.40 lakh tonnes of sugar out of the total production of 329.60 lakh tonnes so far, while Maharashtra has produced 105.30 lakh tonnes of sugar. Last year, Maharashtra produced 137.35 lakh tonnes of sugar while Uttar Pradesh produced 102.50 lakh tonnes of sugar last year. Karnataka produced 59.80 lakh tonnes of sugar this year as compared to 59.20 lakh tonnes last year. Tamil Nadu sugar production is at 12.50 lakh tonnes, Gujarat at 10.10 lakh tonnes, Haryana at 7.50 lakh tonnes and Bihar produced 6.30 lakh tonnes of sugar.
Along with sugar production, sugar recovery in sugarcane has also been low this year. The average recovery of sugar last year was 10.13 per cent, which has come down to 9.86 per cent this year. At the end of this sugar year, on September 30, 2023, the closing stock of sugar is estimated to be around 57.23 lakh tonnes, which is the lowest in four years. Last year the closing stock was 70.23 lakh tonnes.
In such a situation, the possibility of sugar export will be weak in the coming year, while it can also affect ethanol production because the government will not want sugar prices to increase in the election year, due to which the diversion of sugar for ethanol production can decrease. This year 63 lakh tonnes of sugar was exported from India, whereas last year sugar export was 110 lakh tonnes.
The Government has not released additional quota for export of sugar keeping in view the domestic availability position, which is being seen as a restriction on exports.
