New Delhi [India], April 7 : Atul Chaturvedi, the Chairman of Renuka Sugar revealed that the anticipated sugar production for the country is likely to surpass 32.0 million tons, a figure higher than earlier projections. Sugar prices to hold firm amidst surge in production during off-peak season
This comes amidst stable domestic sugar prices and anticipation of government intervention to maintain price stability, particularly with elections approaching.
Chaturvedi said, "Sugar Production in the country is likely to be above 32.0 million tons, much higher than initial estimates. Further,with Sugar exports banned and higher monthly releases Sugar values have remained sideways. Moreover, with Elections round the corner Government will ensure prices remain in check."
Domestic sugar prices have shown stability, with ex-mill prices reported at Rs 37.5/kg in Uttar Pradesh and Rs 34/kg in Maharashtra, according to the latest data.
As of January 31, state-wise crushing data for the Sugar Season Year (SSY) 24 reflects improvements in sugar production numbers compared to the previous year.
As per Centrum Sugar Industry, while there has been a reduction in sugarcane crushing activity by 4 per cent, sugar production has decreased by only 3.2 per cent. National sugar recovery numbers have remained relatively stable at 9.71 per cent as per the data.
Maharashtra and Karnataka have experienced significant declines in sugarcane crushing, attributed to fewer operational mills in these states.
Conversely, Uttar Pradesh has seen a growth of 3.7 per cent in sugarcane crushing, accompanied by an increase in the number of operational mills.
The decline in sugarcane crushing has resulted in a decrease in sugar production to 18.7 million metric tons (MMT) compared to 19.3 MMT in the previous Sugar Season Year (SSY) 23.
However, Uttar Pradesh has shown an impressive increase in sugar production by 13.3 per cent.
Industry data suggests that sugar production for SSY24 is estimated to be around 31.7 MMT, lower than the previous SSY23.
This reduction is primarily attributed to lower sugar production in Maharashtra and Karnataka due to decreased yields and recovery.
Despite stable domestic prices, the overall outlook on the sector remains pessimistic, influenced by recent government notifications affecting ethanol volumes and pricing.
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