Despite a late start, the ongoing sugarcane
crushing season for the year 2024-25 will likely be curtailed early in
Maharashtra and Karnataka for want of sugarcane for crushing. Sugar cane production is estimated lower
during the current season as the yield has been affected by pest infestation
and water stress during the summer last year in the key producing States.
Prakash Naiknavare,
Managing Director, National Federation of Co-operative Sugar Factories Ltd
(NFCSF), said the 2024-25 crushing season could end a month earlier due to lack
of cane. “Some mills in
Maharashtra and Karnataka are closing by the end of this month. I see about 12
mills closing operations there at the end of January for want of sugarcane. By
mid-February, another 20-25 mills will close. By February-end, a majority of
them will almost close and then by the end of March, in my opinion, the season
will be over,” Naiknavare said.
NFCSF is projecting a dip in the country’s sugar
output year. “Last year we produced something like 319 lakh tonnes (lt). This
year we are projecting sugar production of 270 lt,” Naiknavare said. As per the NFCSF’s latest crushing report
as of January 15, about 507 mills are crushing cane this year compared to 524
million in the last year. About 122 mills are operational in Uttar Pradesh
against 120 last year. In Maharasthra, the number of mills operational are 196
this year compared with 206 a year ago. However, in Karnataka the number of
mills operational this year is 77 against 74 last year.
About 1,482.14 lt of sugarcane have been crushed
till January 15, down 8 per cent over 1,612.83 lt a year ago. Total sugar
produced in the current season is 130.55 lt, down 13.65 per cent compared with
151.20 lt a year ago.
The average sugar recovery in percentage terms,
excluding the diversion for ethanol, is 8.81 per cent, so far, compared with
9.37 per cent a year ago. The recovery is lower across all the sugar producing
States. In UP, the recovery this season has been is 9.05 per cent (9.90 per
cent last year), in Maharasthra 8.80 per cent (8.95 per cent) and Karnataka at
8.50 per cent (9.60 per cent), as per the NFCSF estimates.
Commenting on the
government’s decision to allow exports, Naiknavare said the decision has come
at the right time because the prices were very depressing. “The domestic realisation has received a boost
because of that announcement and prices have firmed up in all the States,”
Naiknavare said.
As per government estimates, sugar production in
the 2024-25 season starting October 1 is estimated to be 32 million tonnes,
whereas the domestic consumption is estimated at 28.5-29 million tonnes with
some 4 million tonnes diverted for ethanol production.