Sugar output at record 30 mln tn; cane arrears cross Rs 20,000 crore

The association demanded that the government should provide production-linked incentive to cane farmers as it was done in 2015-16 marketing year.

Sugar marketing year runs from October to September.

Sugar output of India, the world's second largest producer, stood at 20.3 million tonnes in the 2016-17 marketing year. The annual domestic demand is estimated at 25 million tonnes.

"Sugar production in the current season up to April 15, 2018, has crossed the expected levels and the Indian sugar industry has already produced 299.80 lakh tonnes," Indian Sugar Mills Association (ISMA) said in a statement. As many as 227 sugar mills were still crushing sugarcane.

Sugar production in Maharashtra has almost reached its past record and mills produced 10.49 million tonnes up to April 15, 2018. Mills in Uttar Pradesh produced record 10.48 million tonnes of sugar.

Crushing operations are almost over in Karnataka and only one sugar mill was operational as on April 15, 2018. The state has so far produced 3.63 million tonnes of sugar.

"The actual sugar production up to April 15, 2018, is already 5 million tonne more than the estimated sugar consumption for the whole season up to September 30, 2018," the association said.

On bumper production, ISMA said sugar prices have been under severe pressure in the last 4-5 months and have fallen by Rs 9 per kg across the country. As compared to the cost of production, the current ex-mill sugar prices are around Rs 8 per kg lower and the sugar mills are incurring substantial losses.

"Inability to pay cane price because of highly depressed sugar prices, has translated into huge cane price arrears of farmers. As on March 15, 2018, the cane price arrears reported to the government was already over Rs 18,000 crore across the country," ISMA said, adding that arrears could have crossed Rs 20,000 crore now.