Despite sugar mills across the country marking 20% increase in production till February 28, 2021 over last season corresponding, concerns are being raised over ex-mill prices showing a downward trend in most states.
The increase is being mainly attributed to Maharashtra, where sugar production till February 28 this year was 84.85 lakh tons.
Despite sugar mills across the country marking 20% increase in production till February 28, 2021 over last season corresponding, concerns are being raised over ex-mill prices showing a downward trend in most states.
According to Indian Sugar Mills Association (ISMA), 502 mills had started operations between October 1, 2020 and February 28, 2021, against 453 in the corresponding period in season 2019-20.
These mills have together produced 233.77 lakh tons of sugar till February 28, as compared to 194.82 lakh tons produced by 453 mills till February 29, 2020.
The increase is being mainly attributed to Maharashtra, where sugar production till February 28 this year was 84.85 lakh tons. Till February 29 last year, 50.70 lakh tons of sugar was produced.
In current 2020-21 season, out of the state’s 188 sugar mills, 12 have ended crushing due to non-availability of cane in their area. Most of these were in Solapur region.
Last year in the same period, 25 sugar mills out of a total of 145 had ended their operations for the season 2019-20.
Thus, as on February 28, 2021, there were 176 sugar mills actively crushing as against 120 sugar mills last year (on February 29, 2020).
However, Uttar Pradesh has recorded a lower output of sugar, according to ISMA.
There are 109 sugar mills currently in operation in Uttar Pradesh, while 11 have stopped crushing operations. The ISMA statement added that most of the mills are from the eastern part of the state.
These mills in the state have produced 74.20 lakh tons of sugar till February 28, 2021, against 76.86 lakh tons produced by 119 mills as on February 29, 2020
In Tamil Nadu, 26 sugar mills have produced 3.16 lakh tons of sugar in sugar season 2020-21, as compared to 3.37 lakh tons produced by 21 sugar mills in 2019-20 on the corresponding date, i.e. February 29,2020.
Andhra Pradesh, Telangana, Bihar, Uttarakhand, Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Rajasthan, and Odisha have collectively produced 23.54 lakh tons of sugar till February 28, 2021.
Raising concern over ex-mill prices of sugar showing a downward trend in most states, ISMA has recommended an upward revision of sugar MSP, which was last revised two years.