Sugar output may fall 41% due to as poor supply of cane

NEW DELHI: Sugar output may slump 41% to 15.5 million tonnes this season starting October 2008, as poor supply of cane has prompted many millers to
shut factories.

“Sugar production is likely to fall to 15.5 million tonnes compared with about 26.4 million tonnes last year due to poor availability of canes,” said a senior industry official on condition of anonymity. “The decline in the recovery rate by 0.9-1% is also to be blamed for the slump in output,” he added. Recovery refers to the rate of sugar production out of cane.

At present, recovery rate has declined to about 9% in northern India, including the second largest cane producing state of Uttar Pradesh, he added. Industry bodies like the Indian Sugar Mills Association (Isma) had earlier pegged output at 16 million tonnes. In Maharashtra, the largest sugar producing state, only 55 private mills are running as on February 28, out of 170 odd mills.

Food and agriculture minister Sharad Pawar had last month said India might produce 16.5 million tonnes of sugar this season. According to the latest government estimate, sugarcane production may go down significantly to 290.45 million tonnes this season from 348.19 million tonnes last year.

source: ET