New Delhi: India's sugar production rose 61 per cent to 73.77 lakh tonnes till December 15 of the current marketing year that started in October on account of early start of mills in Maharashtra and higher sugarcane output, according to industry body ISMA.
Sugar mills have produced 73.77 lakh tonnes of the sweetener till December 15 of 2020-21 marketing year (October-September) as against 45.81 lakh tonnes in the corresponding of the previous year, Indian Sugar Mills Association (ISMA) said in a statement.
As per the data, sugar production in Uttar Pradesh rose to 22.60 lakh tonnes from 21.25 lakh tonnes, while output in Maharashtra increased to 26.96 lakh tonnes from 7.66 lakh tonnes.
"The higher production is because of earlier start of crushing operations in Maharashtra and higher availability of sugarcane in this season," ISMA said.
Sugar production in Karnataka rose to 16.65 lakh tonnes from 10.62 lakh tonnes.
As per trade and market sources, about 2.5-3 lakh tonnes of sugar have been physically exported in the current sugar season so far after October 1, 2020, which will be accounted for against the quota of 2019-20 as the export policy for last year was extended till December 2020. The mills have almost fully achieved the target of 60 lakh tonnes of sugar export for 2019–20, ISMA said.
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"Now, as the sugar export programme has been announced by the government, the sugar industry is expected to respond in the similar manner as during the last year and is confident of achieving the target of 60 lakh tonnes of sugar export, considering the demand from importing countries like Indonesia and Malaysia," it added.
The government had on Wednesday approved a subsidy of Rs 3,500 crore to sugar mills for the export of 60 lakh tonnes of the sweetener during the ongoing marketing year 2020-21 as part of its efforts to help them clear outstanding dues to sugarcane farmers.
The association said it is also awaiting for the government decision on increase in MSP (minimum selling price) of sugar, which was last revised almost two years ago.
There is a need to increase the MSP of sugar to Rs 34.50 per kg, it added.
"The ex-mill sugar prices are under pressure in most of the states and to ensure that sugar mills are able to pay to farmers on time, there is need to quickly decide on increasing the MSP of sugar," ISMA said, adding that the late decision on MSP has adversely affected the cane payment ability of the sugar millers.
"The current cane price arrears are reported to be about Rs 3,500 crore and if MSP is not increased quickly, the arrears will jump very fast to uncomfortable levels," the statement said.
(PTI Report)
