Sugar output slips 11% in Oct-Dec, on late start of mills in Maha & Karnataka

India’s sugar production in the current marketing year till December 15 fell to 74.05 lakh tonnes as against 82.95 lakh tonnes recorded in the corresponding period of last year due to a sharp drop in output in major producing states Maharashtra and Karnataka, industry data showed.

Sugar production in Karnataka dropped to 16.95 lakh tonnes during October 1 to December 15 period of this year as against 19.20 lakh tonnes recorded in the corresponding period of last year, a year-on-year decline of 11.71 per cent, as per data released by the Indian Sugar Mills Association (ISMA).

Karnataka is India’s third largest sugar producing state. As per ISMA data, the number of operating sugar factories in the state stood at 73 in the current sugar marketing season that started from October 1. The total number of operating sugar factories in the country stood at 497.

Maharashtra is India’s largest sugar producing state both in terms of output and the number of operating factories. Sugar production in Maharashtra dipped to 24.45 lakh tonnes till December 15 of the current marketing season against 33.02 lakh tonnes recorded in the corresponding period of last year, a plunge of nearly 26 per cent.

This sharp drop in production in two major producing states is partly because of the delays starting operation by sugar mills. “Notably, this year sugar factories in Maharashtra and Karnataka started around 10 – 15 days later as compared to last year,” ISMA said.

The production in Uttar Pradesh, the country’s second largest sugar producing state, is estimated to be higher than previous year. During October 1 to December 15 period output in Uttar Pradesh rose to 22.11 lakh tonne, which is 9.13 per cent higher when compared with 20.26 lakh tonne output recorded in the corresponding period of last year.

Sugar production in Gujarat and Tamil Nadu was also higher during the period under review when compared with the same period last year.

According to rating agency CRISIL, sugarcane production is expected to decline by 9 per cent in 2023-24 (October 2023 to September 2024) period year-on-year due to scanty rainfall in Maharashtra and Karnataka. In Karnataka rainfall was 18 per cent lower while in Maharashtra it was 3 per cent less when compared with the last season.