India's sugar output down 15% year-on-year in four-and-half months: Trade body

Highlights:

1.The sugar mills in the country have produced 146.72 lakh tonnes of sugar from October 1, 2016 till February 15,2017, as compared to 173.34 lakh tonnes produced in corresponding period last year 

2. Of the 483 sugar mills that started crushing in 2016-17 sugar season, 191 mills have closed their operations 

3. From October 1  to February 15, Uttar Pradesh (UP) produced 54 lakh tonnes of sugar, while Maharashtra produced 39.73 lakh tonnes of sugar and Karnataka produced 20.25 lakh tonnes of sugar 

India's sugar production declined by 15.36% from October 1 last year to February 15 this year on account of closure of sugar mills operations in key producing states, a producers' body said on on Wednesday this week.

"The sugar mills in the country have produced 146.72 lakh tonnes of sugar till February 15 this year as compared to 173.34 lakh tonnes produced on February 15 last year," cited Indian Sugar Mills Association (ISMA) in a press release on February 15.   

According to ISMA, Sugar despatched by sugar mills across the country from October 1, 2016 to January 31, 2017, as reported by the sugar mills, is lower by 7.5 lakh tonnes as compared to the sugar despatched in the first four months of the previous sugar season 2015-16. 

Sugar mills in the country produced 10.5 million tonnes of the sweetener between October 1, 2016 and January 15, 2017, about 5.3% lower than a year earlier as sugar mills in key producing states closed early due to cane shortage, Reuters reported on January 18 citing Indian Sugar Mills Association (ISMA).

As per Indian Sugar Mills Association (ISMA) statement, of the 483 sugar mills that started crushing in 2016-17 sugar season, 191 mills have closed their operations. 

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About 80% of the mills in Maharashtra and 95% of mills in Karnataka have closed their operations.

Uttar Pradesh (UP) produced 54 lakh tonnes of sugar till February 15 this year as against 45.55 lakh tonnes in February 15 last year. 

"Out of the 116 sugar mills in Uttar Pradesh (UP) which started operations during the current sugar season, six sugar mills have shut their crushing operations," cited ISMA in a statement.

According to the ISMA data, about 153 sugar mills in Maharashtra produced 39.73 lakh tonnes of sugar till February 15 this year as compared to 62.70 lakh produced in the corresponding month of last year. Out of 153 sugar mills in Maharashtra, 31 sugar mills are still operating, it said.  

ALSO READ: India's sugar production likely to fall to 22 million tonnes in 2016-17 on cane shortage 

About 61 sugar mills of Karnataka have produced 20.25 lakh tonnes of sugar on February 15 this year as compared to 32.21 lakh tonnes of sugar produced in the similar period  last year. 

"58 out of 61 sugar mills which had started operations this year, have shut their crushing operations by February 15, 2017, for 2016-17 sugar season, as compared to three mills which had shut their crushing last year on the corresponding date," ISMA said. 

The release noted that the ex-mill sugar prices have witnessed a fall in the last few days, mainly because of lack of off-take and poor demand.  

Current global prices are higher to the domestic prices making imports unviable at current levels, it added.

ALSO READ: India's sugar output down 5.3% year-on-year in three-and-half months: Trade body