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Indian Sugar Output Down by 3.2 Per Cent to mid-May 2014

28 May 2014

INDIA - India’s sugar production has recorded a 3.2 per cent drop till the mid-May 2014 at 23.9 million tonnes during the sugar season (October-September), writes Jagdish Kumar.

During the same period last season, sugar output was recorded at 24.7 million tonnes, Indian Sugar Mills Association (ISMA) said in statement.

ISMA said the crushing operations by the sugar mills across the country have come to an end, except for 20 sugar mills in Tamil Nadu.

The sugar mills in Maharashtra have produced 7.7 million tonnes of sugar, which was the same during the last season year, whereas sugar mills in Uttar Pradesh produced about 6.45 million tonnes, which is 1 million tonnes less than a year ago.

Sugar mills in Karnataka have produced 700,000 tonnes less sugar, which was recorded at 4.1 million tonnes during the period.

In the case of the fourth largest sugar producing state, Tamil Nadu, the production was significantly lower than last year when they had produced almost 1.1 million tonnes of sugar, against 1.6 million tonnes produced the earlier season.

ISMA also estimated that sugar production for the full sugar season of 2013-14 should be around 24.2 million tonnes.

As compared to this and considering the trend of sugar dispatches till now, it is estimated that the sugar dispatches by the sugar mills for domestic requirement, will be higher than last year and may be around 24 million tons, as compared to sugar dispatches made by the sugar mills during the full season 2012-13, which was 22.8 million tonnes.

The opening balance as on October 1, 2013 for 2013-14 season was around 9.3 million tonnes and it is expected that around 1.9 million to 2.0 million tonnes of sugar will get exported out of the country in the whole season during October 2013 – September 2014 and, therefore, considering the consumption and production numbers, the closing balance as on September 30, 2014 is expected to be around 7.4 million tonnes to 7.5 million tonnes, ISMA estimates.

The country will be opening the new season with almost 18-20 lakh tons less than last year, but there will be a surplus of about 15-20 lakh tons, which can be exported as and when opportunity arises, ISMA adds.

However, the pace of sugar exports has slowed down because of the unreasonable and unexpected reduction of the export incentive from $56.50 to $39 per tonne by the Indian food ministry.


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