Sugar production in the current sugar season (SS) February15, 2016 is 6.13 lac tonnes higher than the sugar produced upto the corresponding date last year, ISMA said in a release today..
Uttar Pradesh has produced 45.55 lac tonnes of sugar as against 42.25 lac tons of sugar production last year till February15, 2015. As on date, out of 116 sugar mills which started operation during the current sugar season, 1 sugar mill has shut its crushing operations. In Maharashtra, 177 sugar mills have produced 62.70 lac tonnes of sugar till February15, 2016, i.e. 3.5 percent lower to 65 lac tonnes produced in last season on the corresponding date.
In Karnataka 64 sugar mills have produced 32.21 lac tonnes of sugar, compared with 28.55 lac tonnes of sugar production in last year. Andhra Pradesh and Telangana sugar mills have produced 5.50 lac tonnes of sugar upto 15th February 2016. This is lower to last year, during the same period, when there was a production of 6.25 lac tonnes upto the corresponding date. In Tamil Nadu, 37 sugar mills have produced 4 lac tons of sugar, as compared to 3.25 lac tonnes of sugar produced by 42 sugar mills in 2014-15 SS till February 15, 2015.
As regards Gujarat, 8.08 lac tonnes of sugar have been produced by 20 sugar mills. Last year, 19 sugar mills had produced 7.25 lac tonnes of sugar on the corresponding date. In Bihar, 11 sugar mills have produced 3.90 lac tonnes as compared to 4.15 lac tons produced during 2014-15 SS.
Sugar production in Madhya Pradesh & Chhattisgarh is slightly higher at 2.80 lac tonnes, compared with 2.16 lac tonnes produced by 17 mills. Sugar production in Haryana and Uttarakhand remained almost at the same level as that of last year.
“Considering the high debt burden of mills and repayment of other loans including term loans and working capital loans taken from banks, almost all mills are facing difficulties in servicing the bank debts as well as in payment of cane price to farmers at the same time,” ISMA said.
Meanwhile, the ex-mill sugar prices which had fallen to an all-time low in the last 6 years and had started improving from the beginning of the current season has seen a fall in the last 15 days, by a couple of rupees per kilo. Around 9.5 lac tonnes of sugar has been despatched by the sugar mills across the country for exports against the quota fixed by the Government. With a fall in the global prices, the pace of contracts for further exports is slowed down.