Sugar output jumps over two-fold at 42.9 lakh ton in October-November
The sugar production in India has jumped over two-fold at 42.9 lakh tonnes during the time period of October-November because of the first start of the mills in this current season, consistent with the industry body ISMA.
The association attributed the increase in production to the first start of sugarcane crushing this season.
“The production trend within the current season thus far appears to be more or less almost like 2018-19 sugar season when 418 sugar mills had produced 40.69 lac plenty of sugar, as on 30th November 2018, except that the diversion of cane juice and B-molasses this season to ethanol are going to be far more, leading to a net reduction of around 20 lakh plenty of sugar,” ISMA said.
The higher production is due to the sooner start of crushing operations in Maharashtra and therefore the higher availability of sugarcane during this season.
ISMA acknowledged that the typical ex-mill sugar prices in most of the main States are reported to be declining with the commencement of the present season w.e.f. October 2020, barring few northern States where the costs are more or less steady.
Similarly, within the southern states also, the ex-mill prices have declined by an identical figure.
“This indicates pressure within the domestic market thanks to high opening balance, expected increase in production within the current season, delayed export program announcement by the govt and no decision yet on the rise of MSP (minimum selling price) of sugar,” the association said.