Domestic sugar output crosses 14 million tonne: ISMA

Domestic sugar production during October 1 to February 15 of the current season has touched 14.37 million tonne. This is, however, 13 per cent lower than the output of 16.58 million tonne in the previous season, sugar industry body Indian Sugar Mills Association (ISMA) said on Tuesday.

Sugar output in the current season has lagged vis-a-vis last year due to a late start by sugar mills in states such as Uttar Pradesh. However, the gap has gradually narrowed from 29 per cent as on December 31 to 13 per cent now.

The biggest sugar producing state Maharashtra has produced 4.98 million tonne sugar. Ten mills have already exhausted the allocated sugarcane and stopped crushing.

Uttar Pradesh, the second biggest producer, has produced 3.57 million tonne sugar, down 18 per cent over the year ago period. Karnataka, the third-largest producer, has produced 2.7 million tonne of sugar, about 4 per cent lower than the output last year.

According to ISMA, sugarcane payment dues of farmers at the national level have crossed Rs 12,000 crore.

Of this, UP alone accounts for dues of Rs 8,000 crore while Karnataka accounts for another Rs 3,000 crore. UP millers had opposed a price of Rs 280 per quintal for sugarcane on grounds of low sugar prices.

However, after a prolonged standoff, it agreed to pay a price of Rs 280 in two tranches of Rs 260 and Rs 20 while the state government agreed to give the industry various incentives which total Rs 11 per quintal of sugarcane. With sugar realisations remaining depressed, mills are finding it difficult to make payments to farmers.

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.