Categories: Business

India sugar production likely to go up 12 percent in SY 2021 says ICRA

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sugar production

new Delhi. Due to the availability of sugarcane in Maharashtra and Karnataka, the sugar production is expected to increase by 12 per cent to 3.05 million tonnes during the sugar year 2021 starting October. This information is given in a report by rating agency Icra. Icra said that after adjusting the effects of transfer of heavy molasses and sugarcane juice to ethanol manufacturing, sugar production in India (SY) 2021 is expected to grow 12.1 percent year-on-year to 3.05 million tonnes in 2021. Sugar production is expected to increase in the year 2021 due to higher production in Maharashtra and Karnataka, which were adversely affected due to drought last year.

After considering consumption of 25 million tonnes (down 3.8 percent year-on-year) and exports of 50 to 5.5 million tonnes, Icra expects the remaining stock to be 1.1-115 million tonnes in the year 2020. Along with this, due to high sugar production in the year 2021, the availability of domestic sugar is expected to be around 42 million tonnes. He said that in the wake of surplus production of sugar in the domestic market, continued government support would be crucial to maintain the profitability of the industry. Sugar production in Maharashtra is expected to increase by 64 percent to 1.01 million tonnes year-on-year and in Karnataka by 26 percent year-on-year to about 43 lakh tonnes in 2021.

The report said that sugar production in Uttar Pradesh is likely to fall by three percent year-on-year to 12.2 million tonnes. According to the report, the size of sugar exports will also remain at the level of the figures for the year 2020. Accordingly, with the increase in consumption and the pace of sugar exports, the prices of sugar are likely to be supported in the near term. The report, however, ruled out the possibility of any significant rise in sugar prices, given the Chinese surplus scenario.

This post was published on July 24, 2020 12:17 am

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