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Overseas Demand Slow Down in the Country Due to Slow Down in Global Price: Maharashtra, Karnataka Direct Production Increase

Increase Direct Production of Sugar in Maharashtra, Karnataka

By parth rakangorPublished about a year ago 3 min read

The beginning of the new year has been eventful in the sugar market and industry in the country. Various news are coming. Sugar production in the country has increased. The new season for domestic sugar season 2021-2 has started from October 2021 and in the first three months of the new season in October, November and December there are indications that the country's sugar production has increased by about 4%. In these three months, the production of sugar has increased to 114.03 million tonnes which was about 110.03 million tonnes in the previous season. Overall, production in the three months of the new season this year has grown by 7.5 per cent, according to Indian Sugar Mills Association sources. According to world market news, the global market for raw sugar rose by about 31 to 5 per cent in the calendar year 2021, but then at the beginning of the new year of 208, the market appeared to be cautious. Recently, indications were received from overseas that the March futures price of raw sugar was hovering around 12.5 cents per ounce. The world market is currently hoping for a good harvest in Brazil. Extensive rainfall has occurred recently in Brazil, especially in the Center-South Region. Meanwhile, white sugar futures in the global market have recently seen around 495 to 496 per tonne in the new year of 203, after rebounding in 2021. The impact of the indicators of increased production in India has also been felt in the world market. Market players are now eyeing a clearer picture of how the global market downturn is affecting sugar exports from India.

According to the data released by the country at the end of December, in the first three months of the new season, the production process has started in about 6 sugar mills as against the figure of 31 mills in the previous season. In the first three months of the new season this year, Maharashtra has seen an increase of about fifteen per cent in sugar production. Sugar production in Maharashtra has increased to around 3 lakh 3 thousand tonnes during this period as compared to around 3 lakh 3 thousand tonnes in the previous season. The number of sugar mills in Maharashtra starting production this year has increased by 10 to 12 as compared to the previous season. In Uttar Pradesh, meanwhile, the production of sugar in the first three months of the new season this year, however, has come down to around 20 lakh 40 thousand tonnes as against around 3 lakh 6 thousand tonnes in the previous season. The number of active mills has also come down from 150 to 114 this year. Sugar production in Karnataka has increased by about six per cent to around 3 lakh 3 thousand tonnes in three months. Meanwhile, the total demand for sugar in the country in the first two months of the new season has been recorded at about 3 lakh 30 thousand tons. Although the government had given a two-month free sale quota of 360,000 tonnes, the demand was higher than that, experts said. Demand for ethanol from oil companies in the petroleum sector has increased. In the wake of ethanol, the equations in the sugar industry have been rapidly changing.

Ethanol production is increasing along with sugar production. Most recently, on December 9, oil companies issued an Expression of Interest (EOI) ordering about 50 million liters of ethanol. Against this, the sugar mills have shown readiness to supply about 400 million liters of ethanol to such oil companies. Market sources said that the new export demand of sugar in the country has stalled as the price of sugar has come down from high to low in the world market.


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parth rakangor

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