Maharastra may witness bumper sugar production in 2010-11

Mumbai (PTI): Maharashtra may witness bumper sugar production in FY10-11 following an expected increase in the plantation of sugarcane crop in the state, a top industry official said.

After sharp decline in production this year, the state is likely to witness bumper sugar production in FY10-11 due to higher plantation of sugarcane crop. Farmers in Maharashtra have attracted to planting more sugar cane following firming up of cane prices," Maharashtra State Cooperative Sugar Factories Federation, Managing Director, Prakash Naiknavare told PTI here.

However, the production of sugarcane and recovery of the same are expected to remain on lower side this year, Naiknavare said.

Production in India, the world's biggest producer of the sweetener after Brazil, may total 20 million tonnes in the year ending September 30, down from 26.4 million tonnes a year ago, Farm Minister Sharad Pawar said last month.

Output may fall as low as 19.5 million tonnes, Naiknavare said, paring his previous forecast of 20 million tonnes.

Maharashtra's sugar output may fall as low as five million tonnes this year as compared to 9.1 million tonnes last year, he said.

In the domestic market, the dispensation with the requirement of obtaining release orders from the Directorate of Sugar for export of sugar under advance authorisation scheme would continue but the exports under OGL (Open General License) would be regulated through the system of export release orders, National Commodity & Derivatives Exchange Limited, Research Associate, Ruchi Jain said.

The Central Government has decided to make available 5 million tonnes of non-levy (free sale) sugar for the quarter January March, 2009 as against 4.4 million tonnes made available during the corresponding quarter (January March, 2008) of the last sugar season.

Also, any unsold stocks out of normal quota during a month (Jan15-lakh tonnes, Feb-15 lakh tonnes and Mar-16 lakh tonnes) and 20 per cent of the remaining 75 per cent of dismantled second buffer stock (4 lakh tonnes) which is required to be sold/dispatched by the end of the Jan-March quarter, shall be converted into levy sugar.

Sugar millers have already asked the government to set up an independent regulator to look into issues of cane pricing and allocation of sugarcane to different factories.

With the rise in cane crushing in major sugar producing states, the sugar prices in the beginning of the month showed decline in futures market.

However, the expectations of lower output than earlier estimates for the sugar season 2008-09 led to the rise in prices, Jain said.

Indian sugar futures fell towards the end of the month after the government set a higher quota for open market sales in the Jan-March quarter and reintroduced the need for millers to seek its permission for exports.

The total availability of sugar in the month of January, 2009 would be 19.01 lakh tonnes, which includes 2.01 lakh tonnes of levy sugar, 15 lakh tonnes of non-levy, 2 lakh tonnes from buffer stock, Jain said.
source:hindu news