Sugar: Record production expected in 2017-18

Record sugar production expected

The sugar produced in Uttar Pradesh is almost four times then the total consumption of the state. However, in addition to production in the state, Tamilnadu will be able to compensate for the reduction in Karnataka, Maharashtra and other states. According to the study of ISMA, "domestic sugar production is expected to grow from 18% to 20% in the year 2018 to 24.0 to 24.5 million tonnes, in which good monsoon has helped in improving availability of sugarcane in Maharashtra and northern Karnataka and in Uttar Pradesh Record production of about 9.7 million tonnes of sugar, will play an important role. However due to low rainfall for two consecutive years, sugar production in south Karnataka and Tamil Nadu is expected to be affected.

Farmers of UP had adopted CO 0238, a high yielding cane variety, a few years ago, which is giving results of astonishing productivity issues. The CO238 variety is very high productive compared to traditional varieties. Experts estimate that this kind of productivity is 10 to 20 percent higher than conventional varieties.

According to the Indian Sugar Mills Association (ISMA), this year, sowing of this high productivity variety has increased much later this year. Despite a slight increase in the area, the production of sugarcane is expected to increase significantly in 2017-18. Therefore, sugar production in Uttar Pradesh will definitely make a new record next year. However, it is difficult to say anything about the Sugar production figures. Interestingly, this year, the state's big sugar mills have decided to start crushing for one to two weeks. These mills want to achieve the variety of sugarcane, which goes to the jute mills and crusher factories, if they do not start their crushing. Due to non-availability of sugar mills, the farmers, especially the farmers of western Uttar Pradesh, supply the agate variety of cane to mud and khandsari units.

According to one of sugar mills, 'Now the farmers have started believing that the financial problems of sugar mills have come down. The financial condition of the mills is improved, due to which sugarcane farmers are getting paid on time. This year, more sugarcane production is estimated, so sugar mills can increase the crushing season for one month. With all these factors, sugar production will reach new record level in Uttar Pradesh. This year, the area under sugarcane has been 2.33 million hectare with a slight increase, which was 2.3 million hectares last year. With the availability of sugarcane in Uttar Pradesh, Maharashtra and Karnataka, the total sugar production in India is estimated to be 25.0 million tonnes in the crushing season 2017-18, which was 20.3 million tonnes last year.

Sugar can be faded
Sugar production can be sufficient to meet the requirement of sugar at the domestic level if the industry produces according to the estimate. The country consumes about 24.5-25 million tons of sugar annually. Last year, because of lower production in the country, the retail market sugar price has reached US$680 per mt. The next season is starting next month and the production is expected to be even higher in the next season. Soon expectations of softening in sugar prices are being expressed.

Second and the government have allowed import of 0.3 million tonnes of sugar on import duty of 25%. The government has taken this step to ensure that sugar prices do not increase in festive season and be in control.

Sugar production is expected to grow 24 percent in 2017-18: ISMA
Country's sugar production is estimated to increase by 24% in the marketing year starting from October to 25.1 million tonnes. According to the sugar industry organization ISMA, there is hope for a significant increase in sugar production due to the increased sugarcane area in the marketing year of 2017-18.

India is the second largest sugar producer after Brazil in the world. In the current marketing year (2016-17 October-September), sugar production is estimated to be 20.2 million tonnes. Sugar production will increase due to better monsoon due to increase in sugarcane area. ISMA spokesman said that in 2017-18, sugar production is estimated to be 25.1 million tonnes. The government had allowed duty-free import of 5 million tonnes of sugar to increase domestic supply in April-May this year. The government is planning to allow import of sugar to curb prices during the upcoming festival season. The annual demand of sugar in the country is 24 to 25 million tonnes.