With an opening balance of about 38.76 lac tonnes as on 1st October 2017, estimated sugar production of 251 lac tonnes and 2 lac tonnes of white sugar produced out of imported raw sugar, the total availability in the country during 2017-18 Sugar Season (SS) is expected to be about 291.76 lac tonnes, according to Indian Sugar Mills Association (ISMA).
In a statement issued here today, ISMA said that considering a demand growth of around 2%, sugar consumption during 2017-18 SS is estimated at 250 lac tonnes and thus, the closing stock at the end of 30th September 2017 is expected to be about 41.76 lac tons. This will be almost similar to the Opening Balance of this year and will be just sufficient to meet the first two months domestic consumption.
As per information available, as against 3 lac tonnes of raw sugar permitted by the Government in September 2017, to be imported & processed into white sugar by 15th December, 2017, only 2.35 lac tons of raw sugar have been imported. Out of this, about 2 lac tons of white sugar have been produced from the imported raws by the mills.
As on 31st December, 2017, 485 sugar mills were in operation in the country and they have produced 103.26 lac tonnes of sugar, as compared to 81.91 lac tonnes produced last year upto 31st December 2016, when 441 mills were operating. This is 26% higher as compared to last season’s production for the corresponding period. The difference was higher at almost 30% as on 15th December 2017 over last year same time.
The increase of 21.35 lac tonnes upto 31st December 2017 over last year is on expected lines. ISMA’s estimate of 251 lac tonnes of sugar production in 2017-18 SS is 48 lac tons more than the very low sugar production achieved last year of only 203 lac tons. Out of this expected increase of 48 lac tons, 21.35 lac tonnes has come up upto December 2017 and the balance increase of about 27 lac tonnes will come in the next 3-4 months. The estimated production of 251 lac tonnes will get fully consumed domestically when the domestic consumption this year is estimated at around 250 lac tonnes.
The increase is basically from U.P. and Maharashtra who have produced 7 lac and 13 lac tonnes, respectively more than last year. Overall these two States would be contributing for 13 and 32 lac tonnes, respectively in the whole season, of the estimated higher production of 48 lac tonnes.
In Maharashtra, 180 sugar mills, which are in operation, have produced 38.24 lac tonnes till 31st December, 2017, as against 120 sugar mills which produced 25.35 lac tonnes last year. From the beginning of the season and till 31st December, 2017, average sugar recovery% in the State stands at 10.23% as against 10.29% achieved for the corresponding period of 2016-17 SS.
In Uttar Pradesh, 116 sugar mills are in operation and they have crushed about 333 lac tonnes of sugarcane and produced 33.80 lac tonnes as on 31st December, 2017, with an average recovery of 10.15%. In 2016-17 SS, same number of sugar mills were in operation on 31st December, 2016 and they crushed around 272 lac tonnes of cane to produce 26.78 lac tonnes of sugar with an average recovery of 9.87%.