Sweet recovery

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Indian sugar production has recovered to 23.60 lakh tons at the end of November, up 4.62 lakh tons year-on-year, the Indian Sugar Mills Association has (ISMA) has said.

It said that 351 sugar mills were crushing sugarcane this year against 343 mills a year earlier. The major sugarcane producing states, Gujarat, Maharashtra, Karnataka and Uttar Pradesh, have all enhanced their sugar production.

Most of the sugar mills in Maharashtra have started their crushing operation and 158 sugar mills were crushing sugarcane as on end of last month compared to 155 last year. “They have produced 12.87 lac tons s of sugar upto 30th November, 2015 as compared to 11.95 lac tons produced in the corresponding period last year. The slightly higher sugar production is mainly because larger number of sugar mills started their crushing operation earlier this year as compared to last season,” it said in a statement.

In the case of Uttar Pradesh 66 sugar mills were crushing sugarcane on 30th November, 2015 who have produced 1.80 lac tons as at end November, while 60 mills were crushing in Karnataka. In Gujarat, all 18 sugar mills have started crushing on and they have produced 2.25 lac tons of sugar by end of last month.

ISMA said sugar prices, which had been depressed between October 2014 and July 2015, had also recovered. The sugar prices which had fallen till July 2015 since October 2014 last year, and had reached the lowest in the 6-7 years, had improved by Rs 4-5 per kilo at the mill gate, it said, adding that ex-mill sugar prices have stabilised at the current levels in the last 15-20 days.

“As compared to ex-mill sugar prices prevailing last year at the same time, the current ex-mill prices are still lower by a couple of rupees.  Further, as compared to cost of production the current ex-mill prices are still lower by around Rs.5 to 6 per kilo,” the statement said.

About four lakh tons of sugar contracts for export have been finalised, it added.

 

 

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