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Sugar output up 24% at 21 lakh ton till Nov 15 this season; export contract at 25 lakh ton.

Date: 18-11-2021
Subject: Sugar output up 24% at 21 lakh ton till Nov 15 this season; export contract at 25 lakh ton
India's sugar production rose 24 per cent to 20.9 lakh tonnes during October 1-November 15 on higher output in Maharashtra and Karnataka, while mills have entered into contracts to export 25 lakh tonnes of sweetener so far, according to industry body ISMA. Sugar marketing year runs from October to September.

"Sugar production till November 15, 2021, in the current 2021-22 season is 20.90 lakh tonnes as against 16.82 lakh tonnes produced last year on 15th November 2020," Indian Sugar Mills Association (ISMA) said in a statement.

Several sugar mills in the south and west, started their operations earlier this season, because of which the sugar production is higher, it added.

In Uttar Pradesh, the crushing season in the current season got delayed by a few days due to unseasonal rains in the third week of October.

Sugar production in Uttar Pradesh has dropped to 2.88 lakh tonnes from 4 lakh tonnes during the period under review.

However, sugar output in Maharashtra rose to 8.91 lakh tonnes from 6 lakh tonnes. In Karnataka, sugar production increased to 7.62 lakh tonnes till November 15 of 2021-21 marketing year from 5.66 lakh tonnes in the year-ago period.

As per port information and market reports, ISMA said that about 25 lakh tonnes of contracts for the export of sugar have already been entered into so far.

Out of this, about 2.7 lakh tonnes have been physically exported out of the country in October 2021, compared to 1.96 lakh tonnes exported in the corresponding month last year.

Over 2 lakh tonnes of sugar is in pipeline to be physically exported in November 2021.

With an opening balance of 81.75 Lakh tonnes of sugar as of October 1, 2021, and estimated sugar production of 305 lakh tonnes, India will have another surplus year and need to continue to export about 60 lakh tons of the surplus sugar out of the country during 2021-22 season, ISMA said.

"Against an annual requirement of 459 crore of litres of ethanol by the OMC's (oil marketing companies) for 2021-22 ethanol supply year, 414 crore litres of bids have been submitted in the first EOI (expression of interest) invited by OMC's. The bids are under examination and agreements would be signed soon," ISMA said.


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