Sugar output up by 2.5 million tonnes till April: ISMA
Moneylife Digital Team 02 May 2012

According to industry experts, despite additional export for the 2012-13 sugar season beginning October, the industry will start with a carry over stock of over 5 MT

India’s sugar production has reached 25.1 million tonne (MT) till April 2012, an increase of around 2.5 MT as compared to the previous year, according to the apex industry body Indian Sugar Mills Association (ISMA). The association is also hopeful that its estimate of total 26 MT output, projected in July 2011, will be achieved. Meanwhile, traders are awaiting notification to export additional 1 MT of sugar.
            
According to ISMA, Uttar Pradesh, largest producer in India, has recorded an output of 6.9 MT and Maharashtra has produced 8.8 MT. Among the southern states, Karnataka has so far produced 3.7 MT, Tamil Nadu has 1.5 MT and Andhra Pradesh has produced 1.1 MT. The domestic demand for sugar India is about 22 MT. The sugar marketing year starts from October-September.

Meanwhile the number of sugar mills engaged in crushing sugarcane has substantially gone down. As of 1st May 2012, the total number of mills functioning was 129 against 174 last year. However, Tamil Nadu noticed a reverse trend with an increase in the sugar mills to 42 from 33 in the previous year.

The union government had allowed 2 MT of sugar export in tranches for the current season. An additional 1 MT of sugar export was allowed on 26th March by the Empowered Group of Ministers led by finance minister Pranab Mukherjee. However, the notification for the same is awaited.

Today, replying to query in Rajya Sabha, Anand Sharma, commerce and industry minister, said that the decision to allow one million tonne sugar export will be soon implemented.

According to industry experts, despite additional export for the 2012-13 sugar season starting from October, the industry will start with a carry over stock of over 5 MT.

Due to piling inventory, arrears to cane growers are increasing. “The total cane arrears of the sugar mills across the country is about Rs10,000 crore (cumulative basis) as the crushing season is coming to an end. We are eagerly awaiting the notification to allow additional sugar export,” said an official at ISMA.

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