India: 80% of sugar mills in Maharashtra, 95% in Karnataka closed
Staff Writer |
Sugar outpu by sugar mills across India from October 1, 2016 to January 31, 2017, as reported by the sugar mills, is lower by 7.5 lac tons as compared to the sugar output in the first 4 months of the previous sugar season 2015-16 SS.
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As was expected, sugar despatches by mills in January 2017 is lower by almost 2.5 lac tons as compared to that of January 2016 last year.
The trend of lower sales noticed from October 2016, has continued even in January 2017. One has to wait to see whether the trend of lower off-take will continue or get reversed in February’17.
Last year in 2015-16, total sugar despatches were to the tune of 248.5 lac tons.
Considering that the downtrend of sugar sales gets reversed and taking sales in the next 8 months of the current season at similar levels as that of last year, the current year’s sugar despatches would be around 240 lac tons.
However, if one takes 2% growth over last year in the next 8 months, the sugar despatches can be 160 lac tons.
Therefore, the sugar consumption/despatches in the current season would be in the range of 240-243 lac tons as per this calculation.
As on 15th February, 2017, sugar mills in the country have produced 146.72 Lac tons of sugar, as compared to 173.34 lac tons produced as on 15th February 2016.
Sugar production in this season till 15th February 2017 is 26.62 lac tons lower than the sugar produced upto the corresponding date last year.
Of the 483 sugar mills that started crushing in 2016-17 SS, 191 mills have closed their operations.
About 80% of the mills in Maharashtra and 95% of mills in Karnataka have closed. ■
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