New Delhi: Sugar production in the country is expected to decline by about 20 per cent in the sugar season 2019-20 starting from October 1, due to poor crop in Maharashtra and Karnataka.The National Federation of Co-operative Sugar Factories Limited (NFCSF) is estimated to produce 263 lakh tonnes of sugar throughout the country in the upcoming crushing season 2019-20.
NFCSF managing director Prakash Naiknavre told that the crop of wheat in Maharashtra, the second largest sugar producing state in the country, has suffered heavy losses due to floods and drought, due to which sugar production in the state in the upcoming crushing season is about 50 from last year. The percentage may remain low.The NFCSF in its latest estimate has estimated sugar production in Maharashtra to be 5.5 million tonnes in 2019-20 as compared to 107 lakh tonnes in Maharashtra in 2018-19 last year.
He said that half of Maharashtra (Marathwada region) is in the grip of drought, while flooding in the western sugarcane producing region of the state Kolhapur, Sangli, Satara and Ichalkaranji has damaged the crop.
Similarly, in Karnataka, there are reports of drought and flooding of crop crops due to drought and floods. NFCSF has projected 118 lakh tonnes of sugar to be produced in the upcoming season in Uttar Pradesh, the country’s largest sugar producing state. According to NFCSF data, in the next season 2019-20, 33 lakh tonnes are expected in Karnataka, 10 lakh tonnes in Gujarat, eight lakh tonnes in Bihar, seven lakh tonnes in Punjab and 7 lakh tonnes in Haryana.
In the upcoming crushing season 2019-20, Tamil Nadu is expected to produce eight lakh tonnes, while Andhra Pradesh has five lakh tonnes, Madhya Pradesh 4.5 lakh tonnes and Uttarakhand four lakh tonnes. The industry body has estimated production of 2.5 lakh tonnes in Telangana and one lakh tonnes in other states.
Thus according to NFCSF, the total sugar production in the country is estimated to be 263 lakh tonnes in the upcoming sugar season. Earlier in August, Naiknavre had reported that the country is expected to produce 330 lakh tonnes of sugar in the current season 2018-19, while in the upcoming season 2019-20, sugar production is expected to be 28.5 lakh tonnes.
NFCSF Managing Director stated that India has exported 38 lakh tonnes of sugar in the sugar season ending 30 September 2019, the remaining stock is 145 lakh tonnes, which is the largest carryforward stock ever.
Thus, according to the latest estimates of NFCSF, the total supply of sugar in the country could be 408 lakh tonnes in the next season 2019-20 which includes 145 lakh tonnes carryforward stock and 263 lakh tonnes production figures.
According to the industry organization, the country may consume 260 lakh tonnes of sugar in the coming season and if 6 million tonnes of sugar is exported, the remaining stock at the end of the season will be 88 lakh tonnes.
In August last month, the government decided to subsidize sugar mills at a total rate of Rs 10,448 per tonne at the maximum allowable export volume (MAEQ) of 6 million tonnes of sugar for the upcoming season.