With the new sugarcane season starting in October, sugar mills expect a nearly 23% increase in production this year.
According to the Indian Sugar Mills’ Association (ISMA) projection, the production this year is expected to be 251 lakh tonnes, with Uttar Pradesh expected to produce more than 100 lakh tonnes and Maharashtra about 74 lakh tonnes. However, Tamil Nadu is expected to produce just six lakh tonnes.
In 2016-2017, the production was estimated to have been 203 lakh tonnes, with 88 lakh tonnes from Uttar Pradesh, 42 lakh tonnes from Maharashtra, and nearly 10 lakh tonnes from Tamil Nadu. “It is going to be a bumper crop in Uttar Pradesh and production will be high there,” said an ISMA spokesperson.
Industry sources point out that sugarcane is usually a 12-month crop and since Tamil Nadu had drought last year, sugarcane arrival is low. Hence, sugar production would also be low this year in the State.
South Indian Sugar Mills Association president Palani G. Periyasamy said that though production would be low in Tamil Nadu, sugar prices were not expected to increase as other States would have surplus. Sugar mills in the State had the capacity to produce 30 lakh tonnes of sugar a year.
Molasses from U.P.
“The association is in talks with the sugar mills association in Uttar Pradesh to see if molasses can be transported to the mills in the South, especially Tamil Nadu, for processing. “However, the prices and terms and conditions need to be worked out. ISMA is also facilitating the discussions,” he said.
“The southern mills will also ask for assistance from the government. This will be decided at a meeting shortly,” Mr. Periyasamy
