Stating that the ex-mill sugar rates in the nation have remained in the variety of Rs 31-33 per kilo for the last a number of months, the sector body Indian Sugar Mills Association (ISMA) mentioned that to sustain liquidity of funds, mills have been below stress to sell sugar at low rates, which is not sufficient to be capable to produce sufficient funds to be capable to spend the complete FRP to cane farmers.
“The cane farmers and sugar mills are hopeful of the much-awaited announcement by the Government of India, regarding the increase in MSP of sugar, as a measure to improve revenue realization of mills and payment to farmers,” it mentioned, adding that below the present situations, the improve in minimum promoting cost (MSP) of sugar from the present level of Rs 31 per kilo, which was last fixed in February 2019, appears to be the only realistic way to make sure that mills increase their money flows and can efficiently cut down the cane cost arrears of farmers more quickly.
A process force constituted by Niti Aayog on sugarcane and sugar sector did suggest a one-time improve of Rs 2 per kg and in June last year, meals secretary Sudhanshu Pandey had mentioned the government was thinking about a proposal to improve the MSP of sugar. But because then, no formal announcement has been made.
The sugar mills across the nation have made 303.60 lakh tonnes of sugar till May 15 in the ongoing 2020-21 marketing and advertising season, which is up by 14.43% from the 265.32 lakh tonnes made through the exact same period last year.
According to ISMA, the country’s biggest sugar producer — Uttar Pradesh, has made 108.70 lakh tonnes of sugar, which is, on the other hand, practically 11% reduced than the 122.28 lakh tonnes made by it last year on the corresponding date.
As numerous as 99 mills out of 120 operated this year in the state have closed for the season, although 21 are continuing their operations, compared to 46 mills which have been operating on May 15 last year. According to ISMA, operations in the mills in the western area of UP got prolonged by a couple of days as most of the gur and khandsari units closed their operations due to lockdown restrictions, due to which some of the cane that would have gone to them, got diverted to the sugar mills.
Maharashtra, the country’s second-biggest sugar producer, on the other hand, has made 106.16 lakh tonnes of sugar, compared to 61.35 lakh tonnes produced in the 2019-20 sugar season. While 185 mills have currently closed their crushing operations in the State, 5 sugar mills are nonetheless operating.
In Karnataka, all the 66 operating sugar mills have currently closed their crushing operations by the initial week of April, has made 41.67 lakh tonnes of sugar. During the corresponding period last year, the mills had made 33.82 lakh tonnes of sugar.
According to ISMA information, mills are estimated to have sold 15.26 million tonnes of sugar in the domestic industry till April in the present marketing and advertising season, against the government fixed quota of 14.7 million tonnes. In the case of exports, ISMA mentioned mills have contracted to export 5.7 million tonnes of sugar so far, which is 95% of the 6 million tonnes of the export target fixed by the government for the ongoing season.
Out of this, more than 3.7 million tonnes of sugar has been physically exported out of the nation through the January-April period of this season. Another 7-8 lakh tonne of sugar is in pipeline to be physically exported this month, it added.