Maharashtra: Chances Of Hike In Sugar Price Amid Deficit Sugarcane Production

Pune, 10th February 2023: At the beginning of the fall season of sugar mills, net sugar production in the country was estimated to be 357 lakh tonnes excluding 45 lakh tonnes of sugar for ethanol production.

According to the revised estimate, only 330-333 lakh tonnes of sugar will be produced, industry experts say. As a result, there is no possibility of export being allowed anymore. The current price of sugar in the retail market of Rs 35 is likely to go up to Rs 38 soon.

According to Jaiprakash Dandegaonkar, president of the National Cooperative Sugar Factory Association, it was estimated that the net sugar production in the country would be 375 lakh tonnes before the start of the season. According to the revised estimate, 330-333 lakh tonnes of sugar will be produced. The country needs about 275 lakh tonnes of sugar every year. Besides, 61 lakh tonnes of sugar have been allowed to be exported. No more sugar export is likely to be allowed as production will decrease.

Mukesh Goyal, a sugar exporter, said that the production of sugar is expected to decrease. Therefore, there is a possibility of a price increase. By May, the retail price of sugar will go between Rs 38 and Rs 40. The export of sugar will not be allowed even if the price of sugar is high in the international market.

It was estimated that 13.8 lakh tonnes of sugar would be produced in Maharashtra this year. The revised estimate is 128 lakh tonnes. Twenty crore litres of ethanol will be produced in the state, for which around 16 lakh tonnes of sugar will be used. Sugar Commissioner Shekhar Gaikwad informed that ethanol production is going on in a total of 80 projects in the state.

Reasons for production decline
The weight of newly planted sugarcane is 10 per cent less than the national average
The weight of the cassava crop is 20 per cent less than the average
The expected growth of sugarcane has not been achieved due to continuous rains for four consecutive months
The state has sugarcane on 1487 lakh hectares as in previous years, but great weight loss
A big deficit in sugarcane weight in Solapur, Marathwada sugar division