India’s sugar exports hit 2 Lakh Tonnes this year despite producing only one-third of sugar compared to the previous year. Additionally, the Indian Sugar Mills Association (ISMA) confirmed that they have finalised 12 lakh tonnes contracts.
Reports Released by ISMA Regarding Sugar Production
As of November 15th, sugar production was 4.85 lakh tonnes in the current year 2018-19. As opposing the 13.38 lakh tonnes of sugar production at the same time in 2018. only 100 sugar mills were crushing sugarcane in 2019 against the 350 mills in 2019. In Karnataka, only 18 mills are operating and producing 1.43 lakh tonnes of sugar. In comparison to 2018, 53 sugar mills produced 3.60 lakh tonnes of sugar in Karnataka. Similarly, Maharashtra has stooped down to zero mills against the 149 mills that were already under operation by the same time last year. Due to floods in Maharashtra operations didn’t begin and sugar mills production expected to begin from 22nd of November.
In divergence to that, Uttar Pradesh produced 293,000 tonnes of sugar against the 176,000 tonnes produced in 2018. Additionally, two mills from UP, 3 from Gujarat and 5 from Tamil Nadu clocked high production of 49,000 tonnes of sugar and helping India’s sugar exports.
Nonetheless, ISMA predicts a fall of 20% in the overall production of sugar in 2019.
Reasons for the Delay in Sugar Production
India’s sugar production reduced to about 65% compared to previous year. Subsequently, the center blames low production in Karnataka, and Maharashtra. It is so due to the delay in the crushing process undertaken by the states. Further causing a hindrance was the floods in Maharashtra that affected crops in Kolhapur, Sangli, Satara, and Pune. Sugar production dropped by 40%, which is from 10 million tonnes to 6.2 million tonnes.
Despite Low Production, High Export
Previously India set a goal to export over 6 million tonnes of sugar to soothe the issue of excess sugar in the country. Considering the demand from Iran and a few other countries in Asia, the target is yet to be attained. With this year’s produce, the deal would gather momentum. In accordance, to boost export deals were finalized for $310 per tonne for raw sugar and USD 313 per tonne of white sugar.