According to the latest report released by National Federation of Co-operative Sugar Factories (NFCSF), India for the first time has witnessed record production of net sugar in excess of 342 Lmts till 30th April ,2022. This is 14% more than last year’s corresponding dated sugar production of 300 Lmts. India’s net sugar production of previous 3 years has been 312 Lmts in 2017-18, 322 Lmts in 2018-19 & 259 Lmts in 2019-20.
Another remarkable feature of the ongoing sugar season is that out of 520 mills in operation, 219 sugar mills are still in crushing as against 106 sugar mills in crushing on same date last year. Data of mills in crushing on 30th April during last 3 years is in 2017-18 110 mills in operation, in 2018-19 90 mills in operation and in 2019-20 112 mills in operation.
At this pace All India net sugar production (after subsuming 35 Lmts of sugar into Ethanol) is poised to be in excess of 355 Lmts as against 311 Lmts of sugar production in the last year. The final sugar production attained in last 3 sugar seasons has been 323 Lmts in 2017-18, 332 Lmts in 2018-19 & 274 Lmts in 2019-20.
This year’s crushing season specially in the states of Maharashtra, Uttar Pradesh, Haryana & Gujarat may continue till end of May 2022 which would be another new record in the history of Indian sugar sector. Top three states (Maharashtra -39%, Uttar Pradesh -29%, & Karnataka -17%,) contributes 85% of the total sugar production in India. Put together, these three states have produced 291 Lmts of sugar as on 30th April,2022 against 254 Lmts of sugar produced by them as on 30th April,2021. While all-other states have produced 51 Lmts of sugar against 46 Lmts on similar date last year.
Noteworthy point is that, despite of highest ever net sugar production that India is poised to attain, the Ex-mill realisation of sugar in domestic market has not crashed. The average realisation as on date for S grade of sugar is Rs 3300 /Qtl while for M grade it is 3550/Qtl. This is mainly due to record breaking sugar export contracts of 85 Lmts out of which 65 Lmts of sugar has been physically dispatched from mill level to ports for exports.
The major sugar export destinations are Indonesia (15%), Bangladesh (10%) and 3% each to Afghanistan, Somalia, Djibouti & Malaysia. The final expected 95 Lmts sugar exports would generate revenue of Rs 30,000 crores by Indian sugar mills which itself is a stupendous achievement in light of the fact that these exports have been accomplished without Govt Subsidy.
