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Maharashtra To Be The Top Sugar Producer (21-Feb-2010)

Indian-Commodity  :  Commodity-Market  :  Maharashtra To Be The Top Sugar Producer
Maharashtra To Be The Top Sugar Producer
The State of Maharashtra, which captures the top spot among the sugar producing states by beating Uttar Pradesh three years ago is expecting to keep hold of this position this season too.

The Sugar production in Maharashtra estimated to rise by 20 per cent to 5.5 million tonne in the 2009-10 seasons on account of more cane crushing. The production of sugar in Maharashtra is mostly dominated by the cooperative mills.

Maharashtra State Co-operative Sugar Factories Federation managing director Prakash Naiknaware said, "We expect sugar production to be around 5.5 million tonne".

However, he also said that this year as the mills have started sugarcane crushing in November, the sugar output in Maharashtra touched 4.36 million tonne.

Adding to this he also said that the average sugar recovery is marginally lower this year as compared to the last season, but still there is more production as mills have started crushing more sugarcane.

In 2006-07 UP had an output of 8.4 million tonnes and in the same year Maharashtra's output was 9.1 million tonnes and with that it became the number one sugar producing state for the same year.

By the end of the current crushing season, UP sugar mills are expecting to produce around 4.1 million tonne and mostly the sugar mills in UP are owned by private companies.

However, it is nearly 1, 00,000 tonne higher if compare with the last year. Following the drastic fall in sugar realisation by 15 per cent over the last fortnight, the sugar mills in Uttar Pradesh and the neighbouring Uttarakhand have decided to reduce the price paid to farmers for sugarcane by nearly 8 per cent (Rs 20 a quintal). The move by the sugar millers is aimed at ensuring good returns in case of declining sugar prices.

UP Sugar Mills Association (UPSMA) and the Uttarakhand Sugar Mills Association took the decision at a meeting.

To cut the sugar prices by Rs 20 a quintal was unanimously decided by the members, since there was a steep decline in the sugar prices owing to the intervention by the central government and there will be a review of the situation, if there is a further decline in sugar prices, said a UPSMA official.

Currently, the mills in UP are paying Rs 260-265 a quintal to farmers while farmers in Uttarakhand are getting Rs 270-275 a quintal.

Mr. Sharad Pawar our Food Minister has said, the country will have enough sugar this year, but the prices of sugar will continue to be higher because of the low output in sugar. Further he said rising prices of sugar is a big concern for the government.

Along with the Food Minister our Prime Minister Man Mohan Singh in a meeting with the Indian Sugar Mills Association (ISMA) has also expressed concern regarding rising of sugar prices and their possible impact on consumer prices , said an official.

According to the data published of sugar processed up to December-January shows a drop of almost 10% in UP alone and around 2.5% countrywide, compared to the same time last year. The estimates of 16 million tonnes for the current crushing season could be affected if the down trend in sugar processed continues for the crushing season.
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