In Commodity News 09/06/2015
Sugarcane crushing operations across the country are about come to an end. Only 19 sugar mills are crushing at present. As compared to about 240.49 lakh tons of sugar produced between 1st October 2013 and 31st May, 2014, in the last 2013-14 sugar season, the Indian sugar industry has produced a record 279.57 lakh tons of sugar in the current 2014-15 sugar season between 1st October 2014 and 31st May 2015, according to a data by Indian Sugar Mills Association(ISMA).
As per the cane availability for the current sugar season and the current sugar production of about 279.57 lakh tons produced upto 31st May 2015, it is estimated that the sugar production for the full sugar season of 2014-15 would be around 283 lac tons, similar to that in 2006-07 SS, which was then the highest ever produced in the history of the Indian sugar sector.
From the beginning of the season and till 31st May, 2015, sugar mills across the country have moved 5.58 lac tons of sugar (both raw and white) for export purposes, of which about 3 lac tons of raw sugar has been exported after announcement of export incentives. Since global prices have also fallen to one of the lowest levels since 2009 at around 12 cents/lb, it is expected that not more than another 2 lac tons of sugar would get exported in the remaining period.
Taking into consideration the estimated domestic consumption of 248 lac tons and estimated exports of 7 to 8 lac tons, the country would end the season with massive sugar stocks of 103 Lac tons on 30th September, 2015. This is 43 Lac tons more than the normative requirement of the Government for meeting the initial months’ domestic requirement in the new sugar season.
ISMA urged the the Government to come out with some substantial assistance for sugarcane farmers and the sugar industry, otherwise many sugar mills cannot start their operations in 2015-16 SS, and sugarcane will remain unharvested in the fields.
