Uttar Pradesh sugar output seen down 10%

 

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Sugar production in Uttar Pradesh, the country’s largest cane producing state, is likely to fall around 10% year-on-year to under 10 mln tonnes in the October 2021-September 2022 season, according to industry sources.

It is reported by Financial Express.

The dip in production is primarily due to diversion into ethanol production, but rising disease and pest infestation also impacted the output. Sugar recovery has been gradually falling in UP. While in 2018-19 it had hit a record 11.46%, it decreased to 11.30% in 2019-20, while in 2021-22 the recovery was at 10.76%. This year it has struggled to reach 10.04% and with the weather turning warmer than expected, industry watchers fear that the average recovery will fall further by the end of the season.

“Temperatures have suddenly started rising. It has already reached 37-38 degrees and by next week we are expecting it to cross 40 degrees. The sudden increase in temperature is expected to have an adverse impact on the sugar recovery,” said a miller.

While industry body ISMA had estimated 10,2 mln tonnes of sugar output in the state in 2021-22 as against 11,059 mln tonnes in the previous year, field reports suggest that the number is expected to fall further due to a decreased availability of cane, lower-than-expected recovery and yield.

«As many as 25 sugar mills have already stopped crushing operations — most of them being in Eastern UP. As things stand, we expect a majority of them to close operations for the season by April. Generally, mills in UP keep crushing till June», — said an official of the cane department.

As of March 21, sugar mills in UP had crushed nearly 78 mln tonnes of cane and produced 7,8 mln tonnes of sugar.

An estimated 3,4 mln tonnes of sugar is expected to be diverted into ethanol production in the country. Of that, almost 1,1 mln tonnes will be from Uttar Pradesh, followed by 1,04 mln tonnes in Maharashtra and 0,73 mln tonnes in Karnataka.

ISMA had revised upward India’s sugar output estimate to 31,45 mln tonnes for the ongoing 2020-21 marketing season in its second advance estimates, as against its earlier estimation of 31 mln tonnes.


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