Left Menu
Development News Edition

Sugar production likely to decline 8.4 pct to 30 mn tonnes in FY20: report

Devdiscourse News Desk | New Delhi | Updated: 15-05-2019 17:00 IST | Created: 15-05-2019 13:28 IST
Sugar production likely to decline 8.4 pct to 30 mn tonnes in FY20: report
Despite the trend, for the third time in the last four years, Uttar Pradesh will be the largest producer of sugar in India. Image Credit: Pixabay

India's sugar production is likely to decline 8.4 per cent to 30.3 million tonnes for the second straight year in the 2019-20 marketing year that would begin from October because of likely fall in sugarcane output, a latest USDA report said. The sugar output in the ongoing 2018-19 marketing year (October-September) is pegged at 33 million tonnes, lower than 34.3 million tonnes achieved in the previous year.

"The 2019-20 sugar production is forecast to decline 8.4 per cent to 30.3 million tonnes, its second consecutive year of decline," the US Department of Agriculture (USDA) said in its latest report. This includes 6,00,000 tonnes of khandsari and 29.7 of mill sugar, it said.

According to the USDA, "lower than expected cane production in the out-year coupled with a net reduction in the national-average sugar recovery rate will reduce cane availability for direct crush-to-sugar and proportionately moderate sugar output as well." In addition, successive benefits from the dedicated supply of cane juice/B-heavy molasses for fuel ethanol production will further incentivise mills to divert excess sugar to produce fuel ethanol and thus improve cash flows, it said.

Despite the trend, for the third time in the last four years, Uttar Pradesh will be the largest producer of sugar in India. This will partially compensate for lower output from Maharashtra and Karnataka. Overall, sugarcane output will be down 8 per cent to 355 million tonnes from 4.7 million hectares, the report said.

Assuming normal market conditions, the USDA report said that India should be able to export upwards of 3.5 million tonnes of sugar but with some incentives after adjusting for a modest rise in sugar consumption to 28.5 million tonnes. That will still leave stocks of a record 17 million tonnes, which is roughly seven months of consumption, it said.

Total exports will include one million tonnes of sugar re-exported under the Advance Authorization scheme (AAS) and the remaining 2.5 million tonnes will be commercial sales, it added.


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Videos

Latest News

Trump postponed G7 summit, to held in September now

U.S. President Donald Trump said on Saturday that he is postponing until September the G7 summit which had been scheduled for late June.Speaking to reporters on Air Force One during his return to Washington from Cape Canaveral, Trump said h...

As Minneapolis rioters set buildings ablaze, grocer pleads to save his stores

At a little past midnight on Saturday as smoke billowed and flames rose from the tops of a nearby bank and a post office building, Minneapolis grocery store owner Mohammad Abdi knew he had a critical business decision to make.Either go out ...

Trump calls for delay in Group of 7 meeting, seeks expansion

President Donald Trump said Saturday he will postpone a meeting of Group of 7 nations until fall and called for an expansion of the groups membership because he considers it an outdated group that doesnt properly represent whats taking plac...

Disputing misleading claims by Trump, Twitter do fact-checks over tweets

In addition to disputing misleading claims made by U.S. President Donald Trump about mail-in ballots this week, Twitter has added fact-checking labels to thousands of other tweets since introducing the alerts earlier this month, mostly on p...

Give Feedback