Sugar production increases 2% despite crop fall in Maharashtra

PUNE: India’s sugar production has increased 2% in the first five months of this season despite top producer Maharashtra reporting a drop and closure of tens of sugar mills due to nonavailability of sugarcane, industry body Indian Sugar Mills Association ( ISMA) has said.

As many as 107 sugar mills in the country, or about 20% of the total 513 mills that started operations at the start of the sugar season on October 1, are not operational as of February 29, ISMA said in a statement on Wednesday.

Indian sugar mills have produced 199.47 lakh tonnes of sugar in the first five months, up from 195.58 lakh tonnes a year earlier.

Exporters have entered into contracts for shipping out 12.5 lakh tonnes sugar.

“During the current 2015-16 SS, out of 513 sugar mills which started operations, 107 have shut their operations by February 29. Last year, out of 517 sugar mills which were in operation between same period, 13 had shut their operations,” the ISMA release said.

As of February 29, only 406 sugar mills were operating compared with 504 mills a year ago, it said.

As many as 71 closed mills are in Maharashtra, including about 60 in rain deficit areas of Marathwada and Sholapur. Only three sugar mills in the state had stopped crushing by February 28, 2015, ISMA said.

While drought has started adversely affecting Maharashtra's sugar production, Uttar Pradesh, the second largest sugar producer of the country, has clocked about 8% rise in sugar output at 53.65 lakh tonnes as of February end against 49.59 lakh tonnes a year earlier.