Bad weather hits sugar growth in UP, Maharashtra
Sugar production in Uttar Pradesh, country’s second largest producer after Maharashtra is expected to drop by over 15% to 72 lakh tonne for the season.
By NIDHI SHARMA, TNN |
MUMBAI: Sugar production in Uttar Pradesh, country���s second largest producer after Maharashtra is expected to drop by over 15% to 72 lakh tonne for the season (October 2007-September 2008) as against last year���s 85 lakh tonne due to lower-than-expected yield. Sugar production in Maharashtra is also pegged on a lower side and production is expected to hover between 81 and 84 lakh tonne, as against last year���s 91 lakh tonne.
���Sugar production in UP will be between 72 lakh tonne and 74 lakh tonne for the current year which is less compared to previous year,��� said UP sugarcane commissioner Kamran Rizvi. He said that sugarcane yield may drop by 20% this year from last year���s 59 tonne per hectare.
Cane yields have fallen due to bad weather and delay in harvesting of the crop in the state as the mounting cane arrears and lack of clarity on the price to be paid to the farmer delayed offtake and crushing by state sugar mills. Even now the mills have to pay cane arrears of approximately Rs 1,700 crore. UP, till date, has crushed just 587 lakh tonne of sugarcane producing 57 lakh tonne of sugar and the crushing will positively stop before April 20, according to Mr Rizvi.
In Maharashtra too yields have dropped to 70 tonne per hectare as against 72 tonne per hectare last year, due to unseasonal rains though recoveries have been better.
Maharashtra State Co-Operative Sugar Factories Federation managing director Prakash Naiknavare said that improvement in recovery has led to a production of 68 lt of sugar in Maharashtra (crushing 570 lakh tonne of sugarcane) till date as against last year���s 67 lakh tonne (crushing 597 lakh tonne of sugarcane).
According to the Economic Survey, India is likely to produce 270 lakh tonne of sugar for the current year as against 280 lakh tonne previously.
According to a report prepared by Kotak Commodity Services sugar prices have a limited upside from this point onwards. ���We feel the prices would be more or less range bound between Rs 1,400 and Rs 1,550 per quintal ex Kolhapur,��� says the report.
April futures contract has fallen to Rs 1,525 per quintal on March 19 as against Rs 1,625 per quintal on March 5.
���Sugar production in UP will be between 72 lakh tonne and 74 lakh tonne for the current year which is less compared to previous year,��� said UP sugarcane commissioner Kamran Rizvi. He said that sugarcane yield may drop by 20% this year from last year���s 59 tonne per hectare.
Cane yields have fallen due to bad weather and delay in harvesting of the crop in the state as the mounting cane arrears and lack of clarity on the price to be paid to the farmer delayed offtake and crushing by state sugar mills. Even now the mills have to pay cane arrears of approximately Rs 1,700 crore. UP, till date, has crushed just 587 lakh tonne of sugarcane producing 57 lakh tonne of sugar and the crushing will positively stop before April 20, according to Mr Rizvi.
In Maharashtra too yields have dropped to 70 tonne per hectare as against 72 tonne per hectare last year, due to unseasonal rains though recoveries have been better.
Maharashtra State Co-Operative Sugar Factories Federation managing director Prakash Naiknavare said that improvement in recovery has led to a production of 68 lt of sugar in Maharashtra (crushing 570 lakh tonne of sugarcane) till date as against last year���s 67 lakh tonne (crushing 597 lakh tonne of sugarcane).
According to the Economic Survey, India is likely to produce 270 lakh tonne of sugar for the current year as against 280 lakh tonne previously.
ADVERTISEMENT
The Indian Sugar Mills Association have kept the production estimate at 266 lakh tonne and with a consumption of 203 lakh tonne and opening stock of 103.7 lakh tone. It is estimated that there will be ending stocks of abouy 121.7 lakh tonne after 45 lakh tonne of exports. According to a report prepared by Kotak Commodity Services sugar prices have a limited upside from this point onwards. ���We feel the prices would be more or less range bound between Rs 1,400 and Rs 1,550 per quintal ex Kolhapur,��� says the report.
April futures contract has fallen to Rs 1,525 per quintal on March 19 as against Rs 1,625 per quintal on March 5.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
