If sugar rates rise in the coming days, then it will not be a surprise as sugar production is expected to decrease in the current financial year. The sugar mill industry has lowered its estimate of sugar production by 8 lakh tonnes to 3.02 million tonnes in the current season. The sugar mills’ union, ISMA, said on Thursday that the production estimates, taking into account the possibility of using about 2 million tonnes of sugarcane juice and B-molasses for ethanol production for the 2020-21 marketing season (October-September) is reduced. The revised estimate also exceeds the production of 20.42 million tonnes of sugar in 2019-20.
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In its first estimate, the Indian Sugar Mill Association (ISMA) had estimated the production for the current season to be 31 million tonnes. As per the second advance estimates, ISMA said, “The country is expected to produce 3.02 million tonnes of sugar during the year 2020-21”. Sugar production in the country’s second largest sugar producing state, Uttar Pradesh, is estimated to be less than 1.05 million tonnes in the current session, compared to 1.26 million tonnes in the previous session.
Estimates of higher sugar production in Maharashtra
Sugar production in Maharashtra, the second largest sugar producer, is expected to increase to one crore 5.4 lakh tonnes as compared to 61.6 lakh tonnes last time. This time the mills are able to crush more due to increase of 48 percent area of sugarcane cultivation in the state. Production in Karnataka, the third largest sugar producing state, is expected to increase to 42.5 lakh tons from 34.9 lakh tons last season. According to ISMA, after taking into account the initial stock of around 1.07 million tonnes on October 1, 2020, the country is expected to hold up to about 89 lakh tonnes at the end of the season.
Decision to increase sugar MSP soon
ISMA said that the government has announced two important policy decisions to improve liquidity of sugar mills during the 2020-21 season, a sugar export program of 6 million tonnes for this season and an improvement in ethanol prices. , Which has been welcomed by the sugar industry. The sugar industry said that ex-mill prices of sugar are already under pressure in almost all the states and to ensure that sugar mills are able to pay farmers, there is a need to take a quick decision on increasing the MSP of sugar.