Aided by early crushing season, Sugar output up 10% at 47.21 lakh tonnes till Nov-end

An early start to the sugar crushing season in the country’s western location has pushed up the sweetener output by about a tenth until the stop of November. In accordance to the Indian Sugar Mills Affiliation (ISMA), the output until November 30 this yr was forty seven.21 lakh tonnes in comparison to forty three.02 lakh tonnes in the identical period of time very last yr.

About 416 mills have commenced crushing this yr as in comparison to 409 mills very last yr. In Uttar Pradesh, a hundred and one sugar mills have commenced operations as of the stop of November and manufactured 10.39 lack tonnes in comparison to twelve.sixty five lakh tonnes in the identical period of time very last yr.

In Maharashtra, 172 sugar mills have commenced crushing operations this yr in comparison to 158 sugar mills until November stop of very last yr. Until eventually November stop, sugar output in Maharashtra stood at 20.34 lakh tonnes in comparison with fifteen.seventy nine lakh tonnes identical period of time very last yr.

Likewise, in Karnataka, 66 sugar mills experienced manufactured twelve.seventy six lakh tonnes of sugar in comparison to an output of 11.11 lakh tonnes by sixty three mills in the identical period of time very last yr.

In Gujarat, fifteen sugar mills have manufactured 1.66 lakh tonnes in comparison to 1.sixty five lakh tonnes in identical period of time very last yr.

ISMA claimed the cane crushing operations in all the other States have also started, and the rate of crushing is selecting up. About sixty two sugar mills are working in other states that have manufactured two.06 lakh tonnes in this season until the stop of November, larger than 1.82 lakh tonnes in the identical period of time very last yr.

As per information furnished by mills and estimations made by ISMA, complete product sales in the initially month of the latest season, that is, Oct 2021, was all around 24.fifty lakh tonnes towards the domestic product sales quota of 24 lakh tonnes presented by the Authorities.

ISMA more claimed that it was noteworthy that the Authorities experienced greater the time to offer an supplemental quota of two.five lakh tons which was allotted for September-Oct.

Last yr, for the duration of the identical period of time, sugar product sales have been 22.seventy three lakh tonnes as towards product sales quota of 23 lakh tonnes. This yr product sales are larger mostly because of to the easing of Covid restrictions, larger product sales quota (about 26.fifty lakh tonnes together with carry above from September 2021), and larger festive desire.


Even more, ISMA claimed contracts for sugar exports for about 35 lakh tonnes has currently been contracted for exports in the latest sugar season 2021-22.

Most of these contracts have been signed when the world-wide sugar costs have been in the assortment of 20-21 cents per pound of raw sugar. On the other hand, with a drop in the world-wide costs to down below 20 cents, and now to all around 18.six cents per pound of raw sugar, the Indian sugar mills are not coming ahead to indication more export contracts.

Contemplating the domestic ex-mill sugar costs in the western and southern portion of the place and the world-wide costs of all around 20-21 cents per pound, prevailing in the very last pair of months, most of the export contracts of the 35 lakh tonnes are by the sugar mills from Maharashtra and Karnataka.

The ex-mill sugar costs in north India are somewhat larger in the western and southern components of the place, and thus not numerous export contracts have taken place from the northern location.

Ethanol output

ISMA also claimed that looking at that a sizeable quantity of all around 34 lakh tonnes of sugar equivalent is approximated to get diverted into ethanol output, the tension on the sugar mills to straight away contract for more exports is fewer. Therefore, it looks that the sugar mills will hold out for an upward revision of the world-wide costs to all around 21 cents or a lot more.

The Oil Marketing and advertising Firms have invited bids from ethanol makers for ethanol provide yr 2021-22 (December-November) in the stop of Oct 2021, for 459 crore litres for the specific 10% ethanol mixing with petrol for the place as a full. The bids have been opened on November twelve, whereby the ethanol makers provided about 414 crore litres of bids for ethanol supplies. Out of this, 333 crore litres have been provided by the sugar field, based on B-weighty molasses and sugarcane juice as feedstock. This is towards all around 216 crore litres supplied in very last yr, from B-weighty molasses and sugarcane juice. Therefore, as towards about 20 lakh tonnes of sugar equivalent diverted into ethanol very last yr, all around 32 lakh tonnes of sugar equivalent diversion experienced been provided in the bids.

The OMCs have finalised and issued letters of intent for signing contracts with the ethanol makers for 317 crore litres of ethanol supplies in 2021-22 (towards the supply of 414 crore litres). On the other hand, the OMCs have floated a next EOI for a different 142 crore litres, for which the very last date of submission is December three, 2021, ISMA claimed.