India’s Sugar Output Set To Fall 7%, Could Limit Exports

Decrease manufacturing in Maharashtra might drag down India’s sugar output.


India’s sugar output is prone to fall 7% this yr as erratic climate situations have lower cane yields, which might dampen exports from the world’s largest producer of the sweetener, farmers, millers and merchants stated.

Decrease sugar exports from India, additionally the world’s second largest exporter, might elevate international costs and permit rivals Brazil and Thailand to extend their shipments.

“The crop was simply wanting like final yr however once we began harvesting we realised that yields have been very low,” stated Pradip Jagtap, a farmer from the Solapur district of the western state of Maharashtra, India’s No.1 sugar-producing state.

This yr, Jagtap might collect 530 tonnes of cane from his nine-acre plot, down from the earlier yr’s 750 tonnes.

Identical to Jagtap, the 192 different farmers from 11 key cane-producing districts of Maharashtra informed Reuters that extended dry climate situations throughout summer season after which heavy rains later hit the cane crop.

“The summer season was harsh after which we acquired an excessive amount of rainfall from July,” stated farmer Baban Karpe from Kolhapur. “The fields have been waterlogged and the crop did not get daylight for weeks.”

On common, farmers reported a 15% drop in cane yield, however in some pockets, they stated the per hectare loss could be 35%.

Maharashtra, which accounts for greater than a 3rd of the nation’s sugar output, was anticipated to supply a file 13.8 million tonnes of sugar within the present advertising and marketing yr that started on Oct. 1, up from the final yr’s 13.7 million tonnes, in line with the state authorities.

However a 15% drop in cane yields might deliver down Maharashtra’s sugar manufacturing to 11.7 million tonnes, stated a senior official of a sugar mill and a supplier with a commerce home. Each declined to be named as they aren’t authorised to speak to the media.

Together with Maharashtra, cane growers from neighbouring Karnataka state additionally confronted unfavourable climate situations. Because of this, Karnataka’s sugar output seems to be prone to fall to five.5 million tonnes this yr in opposition to 6 million tonnes produced in 2021-22, stated the mill official.

Decrease sugar manufacturing in Maharashtra and Karnataka might drag down India’s sugar output to 33.3 million tonnes within the present 2022-23 yr in opposition to final yr’s file 35.8 million tonnes, the millers stated in a beforehand unreported estimate.


New Delhi has allowed mills to export 6.15 million tonnes of sugar within the first tranche, and producer physique the Indian Sugar Mills Affiliation expects India to earmark as much as 4 million tonnes of sugar for abroad shipments within the second tranche.

However a drop in manufacturing means the federal government might enable a small quantity for exports within the second tranche and even might not approve any additional exports, stated a Mumbai-based supplier with a world buying and selling home, who did not want to be named in step with his firm’s coverage.

India would enable exports after making certain there are ample provides to fulfil native demand of round 27.5 million tonnes, stated a senior authorities official, who declined to be named.

(Apart from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)

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