India’s sugar production continued to fall, and till December 15, it was up to 10.7 per cent less as compared to the same period last year, the latest numbers from both the Indian Sugar Mills Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) showed.
While ISMA said that till December 15, around 7.40 million tonnes of sugar was produced in the 2023-24 season, which was 10.7 per cent less than last year, NFCSF’s crushing report showed that production was 9.2 per cent down year-on-year at 7.43 million tonnes.
The sugar season runs from October to September and between ISMA and NFCSF almost all the sugar companies operating in India, both in the private sector and cooperatives, fall.
The data should further curtail any hopes for increased diversion of sugar towards ethanol this year after the Centre earlier this month summarily stopped the diversion of sugarcane juice for making ethanol.
ISMA, meanwhile, in the statement said that till December 15, 2023, the number of sugar factories operating in the country was 497, which was similar to which operated last year on the corresponding date.
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NFCSF, on the other hand, said that despite hovering El Niño and retreating rains, Maharashtra, Uttar Pradesh, and Karnataka, the leading states in sugarcane and sugar production across the country, have maintained their momentum.
NFCSF hoped that if the current trajectory continues, then India might end up producing around 29.1 million tonnes of net sugar (after accounting for diversion towards ethanol) in the 2023-24 season, which would be almost 12 per cent less than the same period last year.
A few days back, the Central government, in a surprise decision, stopped sugar mills from producing ethanol from sugarcane juice or syrup to ensure that excess quantities of sugar are not lost in the process.
The step was taken to cool down sugar prices and improve availability as the curb on ethanol from juice would plough back almost 2.3 million tonnes of sugar back into the available stocks.
However, with the sugar industry widely protesting against the move, the food ministry, along with Oil Marketing Companies (OMCs) and others, did work out a compromise under which mills would be allowed to divert 1.7 million tonnes of sugar for making ethanol, that also includes juice, as against the earlier estimated 4 million tonnes.
“The government’s sudden decision to ban ethanol production on December 7, 2023, created an atmosphere of worry and confusion in the sugar industry across the country. Distillery projects across the country have invested nearly Rs. 35,000 crore in ethanol production capacity expansion plants. Because of the December 7 decision, they would have become sick due to their inability to pay instalments of loan interest on time. There was a risk of such projects becoming financially ill, and that too for no fault of theirs. However, the central government has given some relief to the sugar industry by modifying its earlier decision through its 15th December order,” Jaiprakash Dandegaonkar, President of the National Federation of Cooperative Sugar Factories, said.
First Published: Dec 18 2023 | 7:42 PM IST
