SUGAR PRODUCTION UPTO 15^TH DECEMBER, 2016

·                  As on 15^th December, 2016, 440 sugar mills were crushing sugarcane for the year 2016-17 SS, and they have produced 53.29 lac tons of sugar till that date, i.e. 5.36 lac tons (11%) higher than the sugar production on the corresponding date of previous sugar season, when same number of sugar mills were in operation and had produced 47.93 lac tons of sugar.

·                  In Maharashtra, 144 sugar mills are in operation and they have produced 17.25 lac tons of sugar till 15^th December, 2016.  In 2015-16 SS, there were 164 sugar mills in operation as on 15^thDecember, 2015 and they had produced 22.50 lac tons.

·                  In Uttar Pradesh, as on 15^th December, 2016, 115 sugar mills have produced 17.66 lac tons of sugar, double to last season’s production of 8.52 lac tons when 105 sugar factories were operating as on 15^th December, 2015.

·                  60 sugar mills in Karnataka, have produced 11 lac tons of sugar till 15^th December, 2016.  This is about 0.71 lac tons higher than the sugar production in 2015-16 SS as on 15^th December, 2015.  During the current 2016-17 SS, 60 sugar mills are in operation as on 15^th December, as compared to 61 which operated on the corresponding date of 2015.

·                  As regards Gujarat, 19 sugar mills are in operation and they have produced 2.40 lac tons of sugar till 15^th December, 2016.  In 2015-16 SS, as on 15^th December, 2015, 19 sugar mills were in operation and they produced 3.32 lac tons of sugar till that date.

·                  In Andhra Pradesh and Telangana, 19 sugar mills started crushing till 15^th December, 2016, as compared to 18 which operated as on 15^th December, 2015.  Sugar mills in these States have produced 1 lac ton of sugar till 15^th December 2016, as compared to 0.92 lac tons produced in the corresponding period.

·                  There are 16 sugar mills in Tamil Nadu in operation and sugar production till 15^th December, 2016 was 0.75 lac tons, as compared to 0.60 lac tons produced by 6 sugar mills as on 15^thDecember, 2015.

·                  In Bihar, Punjab, Haryana and Madhya Pradesh, there are 10, 16, 14 and 17 sugar mills are in operation respectively and they have produced 0.75 lac tons, 0.45 lac tons, 0.70 lac tons and 0.75 lac tons, respectively.

·                  Ex-mill sugar prices in the country have fallen by Rs. 150-200 per quintal and sugar despatches from mills have been affected due to fall in sugar demand from bulk consumers including sweet makers mainly because of shortage of currency in the market.

·                  Sugar despatches in the month of October 2016, was down by around 2.3 lac tons as compared to the despatches made in October 2015.  Though sugar sales in November 2016, was similar to the quantum of sugar sold in November, 2015, market sources suggest that sugar sales in the first fortnight of December, 2016, have been badly affected and that depressed demand may continue till January 2017.  It is expected that sugar sales in the first quarter of October – December, 2016, would be less as compared to the corresponding quarter of last season.

·                  ISMA in its earlier estimates projected that sugar sales in the current 2016-17 SS would be around 255 lac tons, as against 248 lac tons despatched in 2015-16 SS.  However, seeing the current trend of sales/despatches and considering that sugar sales in summer months may increase slightly, it is possible that sugar sales in 2016-17 SS could remain on a lower level of 245 to 250 lac tons.  This would mean  that the expected closing stock at the end of the season i.e. 30^th September, 2016 would go up by another 5-6 lac tons to 60-61 lac tons, equivalent to three months domestic consumption.

·                  As per reports available, jaggery/gur buying including production in major States like Uttar Pradesh, Andhra Pradesh and Tamil Nadu have been affected and its production in 2016-17 SS is likely to see a significant drop as compared to previous year.  This could give extra sugarcane for sugar production resulting in a little more of sugar availability at the cost of gur production.

·                  The market reports suggest that the expectation that India will need to import has subsided and almost all the experts now seem to be convinced that India will have enough sugar and there will be no need to import any sugar into the country.