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India's 2021-22 sugar production to rise 2.90 pc to 31.9 mn tons.
Jan 28, 2022

Sugar production in India, the world's second largest producing nation after Brazil, is estimated to increase by 2.90 per cent to 31.9 million tonnes in the ongoing 2021-22 marketing year, according to the first estimate released by the trade body AISTA on Thursday. With estimated production of 31.9 million tonnes plus opening stock of 8.3 million tonnes with mills, the total availability of sugar in the country is expected to be 40.2 million tonnes in the current marketing year, slightly lower than the previous year, it said.

However, the supply of sugar in the country would be sufficient to meet the domestic consumption, which is estimated to be at 27 million tonnes in the 2021-22 marketing year, it added.

Sugar marketing year runs from October to September.

In case of exports, the All India Sugar Trade Association (AISTA) said the outbound shipments are estimated to be lower at 6 million tonnes in the current 2021-22 marketing year, as against 7.2 million tonnes in the previous year.

'The actual exports in 2021-22, would depend upon the level of domestic sugar prices vis-a-vis international sugar prices,' the trade body noted.

According to the AISTA's first estimate, the country's sugar production is expected to be at 31.9 million tonnes in the 2021-22 marketing year, as against 31 million tonnes in the previous year.

Out of the total estimated sugar production for this year, mills in Uttar Pradesh -- the country's leading sugar producing state -- are estimated to produce 10.5 million tonnes of the sweetener in the 2021-22 marketing year, lower than 11.1 million tonnes in the previous year.

However, production in Maharashtra -- the country's second largest sugar producing state -- is estimated to be higher at 11.5 million tonnes, as against 10.7 million tonnes, while that of in Karnataka -- the country's third largest sugar producing state -- the production is expected to be 4.8 million tonnes, as against 4.7 million tonnes in the said period.

Sugar production is pegged to be slightly higher at 1.1 million tonnes in Gujarat, at 1 million tonnes in Tamil Nadu, and at 3 million tonnes in other states, the data showed.

'The above estimates of 31.9 million tonnes of sugar production excludes the diversion of sucrose for ethanol production,' AISTA said.

It is estimated that 3.1 million tonnes of sucrose would get diverted in the current marketing year for ethanol production from B-heavy molasses and sugarcane juice, it added.

AISTA also said the domestic sugar consumption is estimated to increase by 2 per cent to 27 million tonnes in the 2021-22 marketing year, from 26.5 million tonnes in the previous year.

The first estimate has been arrived at after considering the estimated sugarcane production, sugar production, recovery rate and drawl rate achieved so far in the current marketing year, as well as likely diversion of sucrose for production of ethanol from B-heavy molasses, it said.

Sugarcane crushing is going on, AISTA said and added that it will come out with a second production estimate for the 2021-22 marketing year by February-end or early March.

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