ISMA projects India’s sugar output to rise by over 17% to 32 million tonnes in 2020-21

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Sugar output in India, the world’s second largest producer after Brazil, is expected to increase by 17.69 per cent to 32.01 million tonnes during the season beginning October 2020 on likely higher availability of sugarcane for crushing, industry body Indian Sugar Mills Association (ISMA) said.

The country’s sugar output has reached 27.02 million tonnes (MT) so far in the ongoing 2019-20 season (October-September). About 1,50,000 tonnes of sugar production is expected by season-end, taking total output to 27.2 MT for this season, it said in a statement. On sugar demand and prices, the industry body said the offtake seems to have reached normal levels after the government relaxed lockdown rules.

The ex-mill sugar prices, which had fallen to around Rs 31-31.50 per kg during the lockdown due to drop in domestic sales, have improved quite significantly to reach near the levels seen during pre-lockdown at around Rs 32-33.50 per kg.

“As per total sugarcane expected to be available to the sugar industry for making sugar, ISMA estimates sugar production of 32.01 million tonnes in the season 2020-21. This is assuming normal rainfall and other optimum conditions during the remaining period,” ISMA said, releasing preliminary estimates.

According to ISMA, sugar production in Uttar Pradesh — the country’s largest sugar producing state — is expected to decline marginally to 12.30 MT in the 2020-21 season from 12.64 MT in the current season.

This is because there is likely 1 per cent fall in sugarcane area to 2.292 million hectares this year and also yields and sugar recovery increase would be marginal, it said.

But sugar production in Maharashtra, the country’s second largest sugar producing state, is expected to increase to 10.13 MT in 2020-21 from 6.16 MT this season. Sugarcane area has gone up by about 43 per cent this year on account of good rains although 50,000 hectares cane area was completely lost due to floods in July- August 2019.

Normal southwest monsoon and above normal level of reservoirs is found to be beneficial for early growth of pre-seasonal crops. And overall yield per hectare is expected to go up in the state, it added. Sugar production in Karnataka, the country’s third largest sugar producing state, is expected to increase to 4.31 MT in 2020-21 as against 3.41 MT this season.

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