Maharashtra mills set yet another record in sugar output

Pune: Maharashtra, one of India’s top sugar producers, set another output record in the just concluded crushing season, with mills producing the sweetener paying 85 per cent of the crop’s dues to farmers.

Sugar mills from the state produced 107.19 lakh tonnes of the commodity in the 2018-19 crushing season, marginally higher than last year.

“The sugarcane crushing season largely remained peaceful,” sugar commissioner Shekhar Gaikwad said.


“Sugar mills have paid about 85 per cent of the price dues to farmers.”

The total dues of Maharashtra’s sugar mills to farmers were Rs 21,154 crore, of which Rs 16,545 crore have been paid. Outstanding dues as on May 6 are Rs 4,831crore. At a time when domestic consumption has been stagnating and exports stalling due to subdued prices, increasing sugar output could compound the problem of an industry-wide supply overhang. India expects to produce 330 lakh tonnes of sugar in 2018-19, which will be 1.5 per cent higher than the previous year’s production.

Industry body Indian Sugar Mills Association (ISMA) expects that sugarcane availability in the 2019-20 season will be significantly lower due to the drought in Maharashtra. Yet, there will be significant inventories going into the next year.

“Considering the opening balance of 107 lakh tonnes on October 1, 2018, estimated production of 330 lakh tonnes and domestic consumption of 260 lakh tonnes and estimated exports of 30 lakh tonnes, sugar stocks at the end of the current 2018-19 …. season are expected to be at a higher level of around 147 lakh tonnes,” ISMA recently said.

The industry has been struggling to liquidate stocks.