The ongoing sugarcane crushing season for the year 2024-25 in Maharashtra and Karnataka is expected to be cut short due to a shortage of sugarcane. This season started late and is now facing an early end primarily because the yield of sugarcane has been affected by pest infestation and water stress during the previous summer in the key producing States.
Prakash Naiknavare, Managing Director of the National Federation of Co-operative Sugar Factories Ltd (NFCSF), mentioned that around 12 mills in Maharashtra and Karnataka will cease operations by the end of January due to the lack of sugarcane. Additionally, about 20-25 mills are expected to close by mid-February, with the majority shutting down by the end of February. Naiknavare predicts that the season will be over by the end of March.
NFCSF estimates a decrease in sugar production this year compared to the previous year. Last year, the country produced around 319 lakh tonnes of sugar, whereas this year’s projection is around 270 lakh tonnes.
As of January 15, a total of 507 mills are crushing cane this year, down from 524 mills last year. In Uttar Pradesh, 122 mills are operational compared to 120 last year, while in Maharashtra, 196 mills are operational this year as opposed to 206 a year ago. In Karnataka, 77 mills are operational this year compared to 74 last year. The total sugarcane crushed until January 15 is 1,482.14 lakh tonnes, which is 8% lower than the previous year.
The average sugar recovery this season, excluding ethanol diversion, is 8.81%, lower than 9.37% last year. The lower recovery rates are observed across all sugar-producing States. The government’s decision to allow exports has helped boost domestic realizations and firm up prices in all States.
According to government estimates, sugar production for the 2024-25 season is expected to be 32 million tonnes, with domestic consumption estimated at 28.5-29 million tonnes and around 4 million tonnes diverted for ethanol production.
Overall, the sugar crushing season in Maharashtra and Karnataka is facing an early end due to a shortage of sugarcane, leading to lower sugar production compared to the previous year.
