Sugar output may drop by over 7% in 2016-17: ISMA.

PUNE: According to the preliminary estimates of industry body Indian Sugar Mills Association (ISMA), India's 2016-17 sugar production is likely to decline by 7.3% mainly on account of a severe fall in production expected in Maharashtra, the top sugar producing state in the country.

ISMA estimates production of 232.6 lakh tonnes of sugar in the season 2016-17, down by 7.3% as compared to sugar production of about 251 lakh tonnes in 2014-15. ISMA will give its first estimate of sugar production for 2016-17 in September, by which time, the rainfall situation in the country will become clearer.

A release from ISMA stated, "Based on the satellite images procured in the latter part of June 2016, the total acreage under sugarcane in the country is estimated to be around 49.91 lakh hectares in 2016-17, down by 5.5% compared to 2014-15 sugar season's cane area of around 52.84 lac ha."

Maharashtra's cane area has declined in 2016-17 due to the drought in the state. ISMA expects more than 26% reducation in the area under sugarcane in Maharashtra; from 10.5 lakh ha. in 2015-16 to 7.80 lakh ha in 2016-17. As a result, sugar production is estimated to be around 61.5 lakh tonnes in 2016-17, as against 84.08 lakh tonnes produced in 2015-16, a fall of about 26%.

Like Maharashtra, area under sugarcane in Karnataka in 2016-17 is expected to be about 4.15 lakh ha as against 5.10 lakh ha. in 2015-16. Karnataka's 2016-17 sugar production is estimated to be decline by 21% to 32.2 lakh tonnes, as against 40.71 lakh tonnes expected to be produced in 2015-16.

However, sugar production of second largest producer Uttar Pradesh is expected to increase by 10.52 % to 75.40 lakh tonnes due to increased area under a new high yielding cane variety. Similarly, sugar production in Tamil Nadu is also expected to increase to 15.6 lakh tonnes in 2016-17 SS as against 13.93 lakh tonnes produced in 2015-16.

ISMA expects the total sugar production in 2015-16 to be 251 lakh tonnes. "During October-May 2015-16, about 169 lakh tonnes sugar has been despatched and another 85-86 lakh tonnes is expected to be despatched by mills. With expected sugar exports of 15 lakh tonnes in current season, the closing balance would be 71 lakh tonnes.

With an estimated opening balance on 1st Oct, 2016 of 71 lakh tonnes, and estimated production of 232.6 lakh tonnes, the sugar availability during the 12 months of next season will be 303.6 lakh tonnes, enough to meet the domestic sugar consumption requirement of 260 lakh tonnes in 2016-17.

"For the sugar season 2017-18, the opening balance of about 43 lakh tonnes as on October 1 2017, will be sufficient to meet the country's domestic requirement of October and November 2017," stated the release.

Source : economictimes.indiatimes.com