· 231.5 lakh tons of sugar has been produced upto 15th April, 2014 in the 2013-14 sugar season. This is about 10 lakh tons less than the sugar produced upto the same corresponding period last year when 241.5 lakh tons of sugar was produced.
· ISMA has estimated that 238 lakh tons of sugar will be produced in the current season, which will be 13 lakh tons less than 251 lakh tons produced in 2012-13 sugar season.
· As compared to 115 sugar mills operating on 15th April last year, around 200 sugar mills are still operating as on 15th April, 2014. This could also be said to be because of late start of the current sugar season’s crushing. However, the 200 mill still operating are on the verge of stopping their crushing operations soon.
· 74.7 lakh tons of sugar has been produced upto 15th April 2014 in Maharashtra, which is about 6% lower as compared to 79.1 lakh tons of sugar produced upto 15th April last year. As compared to 14 sugar mills operating at this time last year, there are 53 sugar mills which are still crushing sugarcane in Maharashtra. Another 3 to 3.5 lakh tons of sugar is expected to be produced by the sugar mills in Maharashtra during the current sugar season.
· The Maharashtra sugar mills have crushed 656 lakh tons of sugarcane upto 15th April 2014 at an average recovery of 11.4%, which is slightly lower than 695 lakh tons of sugarcane crushed last year upto same period, though at the same recovery rate as that in the current season.
· The sugar mills in U.P. have produced 62.6 lakh tons of sugar which is almost 10 lakh tons less than the 72.9 lakh tons of sugar produced at the same time last year. The mills have crushed 676 lakh tons of sugarcane till 15th April 2014 and have got an average sugar recovery of 9.26% during the current season, as compared to 793 lakh tons of sugarcane crushed last year at an average recovery rate of 9.18%. The main reason for lower sugar production this year in U.P is the fact that the sugar mills started crushing slightly late because of the uncertainty on the sugarcane pricing, lower sugarcane yields and slightly higher diversion of sugarcane into Gur manufacturing. As compared to 56 mills which were crushing sugarcane last year on 15th April, only 45 sugar mills are operating as on 15th April 2014.
· Karnataka has produced the highest ever sugar production in its history and as on 15th April, 2014, it has produced 40.5 lakh tons of sugar. In the previous season, Karnataka had produced 33.5 lakh tons, but it closed its crushing operation by now. As compared to that, 19 sugar mills continue to crush sugarcane this year. Karnataka State has received better rainfall during both the South-West monsoon as well as from the retreating monsoon in the previous year, which has helped in better yields and sugar recoveries.
· Andhra Pradesh produced 9.8 lakh tons of sugar, which is the same as that of last year. Still 9 mills are crushing sugarcane, but may close soon. Tamil Nadu has produced 10.25 lakh tons of sugar, which is about 30% less than last year. It is expected that another about 3.5 lakh tons of sugar will get produced in the special season in August – September, 2014.
· During the first 6 months of current season i.e. 1st October 2013 to 31st March, 2014, the sugar mills have dispatched 125 lakh tons of sugar for sale in the domestic market, which is 10 lakh tons more as compared to despatches of 115 lakh tons during the same six month period in the last sugar season. The slightly higher despatches are because of better lifting during the last few months after improvement in the market sentiments.
· Upto 31st March, 2014, about 15.4 lakh tons of raw sugar has been produced by the sugar mills, out of which 8.5 lakh tons has been dispatched for export as raw sugar.
· It is estimated that around 14.5 lakh tons of sugar, both as raw and white, have got exported out of the country in the first six months. Out of the above, about 3.50 lakh tons of sugar has got exported in the month of March, 2014 itself, which may be eligible for the incentives announced by the Government on 28th February, 2014.
· However, the Government is yet to announce the incentive for raw sugar production and exports thereof, effective from 1st April 2014 for the months of April and May 2014, which as per the Government notification of 28th February 2014 was supposed to be based on the USD-Rupee exchange rate prevailing in the last seven days of March 2014. Since the Rupee had only appreciated, the market expects the Government to announce the incentive rate at atleast Rs. 3300 per ton, if not more.
· As per reports from the ports, about 3.5 to 4 lakh tons of sugar is expected to be physically shipped in the months of April and May 2014. Some of these quantities has already been dispatched from the factory and would be in transit. Some more raw sugar has been contracted for exports directly as well as through refineries, which are expected to be exported in April, May 2014 and thereafter. Therefore, the incentive rate to be announced by the Government is eagerly awaited by the exporters and the sugar mills. The delay in announcement of incentive rate by the Government is adversely impacting the physical shipments of sugar exports already contracted.