Sugar output plunges on delayed operations by mills

India's sugar production has fallen sharply in the period October 1 to December 15 due to a delay in crushing operations in some states, including Uttar Pradesh.

However, production is expected to catch up in the next couple of months.

The country has produced 2.42 million tonnes of sugar between October 1 and December 15 this year, about 50 per cent less than last year, said a statement from the Indian Sugar Mills Association (ISMA).

So far, 426 sugar mills have started crushing compared with 457 in the same period last year.

Maharashtra, the largest sugar producing state, has produced 1.2 million tonnes, which is about 35 per cent less than last year. About 150 mills have started crushing in the state compared with 155 last year.

Uttar Pradesh, the second-largest producer in the country, produced about 230,000 tonnes of sugar which is about 78 per cent less than last year. About 110 sugar mills in the state have started crushing compared with 116 in the same period last year. The state's private industry, which accounts for bulk of the sugar output, had delayed crushing by more than two weeks following a dispute with the state government on sugarcane pricing.

Karnataka, which is the third-largest producer, has produced 475,000 tonnes, down 57 per cent compared with last year.

ISMA has projected about 25 million tonnes of sugar production in the current sugar season, October 2013 to September 2014. The country produced 25.14 million tonnes sugar in the last season. Domestic consumption ranges between 22 to 23 million tonnes.

India is sitting on a surplus sugar stock in excess of 8 million tonnes as of October 31. Sugar prices have been bearish in the international market, dampening the prospects of sugar exports from the country.