The sugar industry this year is facing a problem of plenty. Sugar production in Maharashtra alone is expected to be much higher and touch 65 lakh tonnes against last season’s production of 53.50 lakh tonnes. It is feared that the current sugar season will close with huge stocks of over 10 million tonnes of surplus sugar which will obviously be carried over to the forth-coming sugar season (October’00-September’01), as reported from market sources.
As a result, the new sugar season is likely to start with a stock, which is equivalent to nearly eight month’s consumption, as said by the officials.
Although the sugar industry has been allowed to export one million tonnes of sugar to reduce the bulging stock, exports will not be remunerative for sugar mills with current international prices ruling at about $240 a tonne, as said.
At this price, Indian factories will be incurring a net loss of more than Rs.2, 000 a tonne, said an official. According to officials of the cooperative department, the country would start the new sugar season with an opening stock of around 101 lakh tonnes even as the sugar industry targets to produce 183 lakh tonnes in the current year. Incidentally, the current sugar season opened with a carry-over stock of 68.9 lakh tonnes.
A section of the sugar industry fears that the opening stock in the new season may be even higher than the current estimate if sugar production during ‘99-’00 overshoots the target. Sugar production in Maharashtra with a total of 130 sugar co-operatives has been unprecedented. Still many more sugar co-operatives are awaiting clearance. The state will need another Rs.150 crore to pay share capital to the proposed co-operatives, reported by ministry. Considering the situation, the centre should not allowed the import of sugar, as reported.
Market
Update (Sugarcane)
