Bijnor Sugar Mills Shift Focus to Sugar Production Amid Declining Output
As sugarcane yields drop in Maharashtra and Karnataka, Bijnor's mills prioritize sugar for domestic markets.
Bijnor sugar mills plan to focus solely on sugar production for the upcoming season.
Maharashtra and Karnataka are expected to see significant declines in sugarcane output, affecting national supply.
Current sugar prices range from Rs 4,250 to Rs 4,500 per quintal, prompting mills to adjust their production strategies.
In Bijnor district, Uttar Pradesh, sugar mills are gearing up to concentrate on sugar production for the domestic market during the forthcoming crushing season. This strategic shift comes in response to anticipated price increases due to expected reductions in sugarcane output from major producing states like Maharashtra and Karnataka, which are projected to decline by approximately 20% and 30%, respectively, due to insufficient rainfall.
The decline in sugarcane production in these states is likely to tighten the national sugar supply, thereby influencing market prices. Currently, sugar prices are fluctuating between Rs 4,250 and Rs 4,500 per quintal, according to local industry assessments. This favorable pricing environment has prompted Bijnor's mills, which have historically diversified their operations, to pivot back to sugar production as their primary focus.
Bijnor is home to ten sugar mills that have previously expanded their revenue streams by producing ethanol and generating electricity. However, with the current market conditions favoring sugar sales, these mills are expected to minimize their production of alternative products this season. In recent years, particularly around 2018, these mills had increased their ethanol production using B-heavy molasses and sugarcane juice, but the current market dynamics have shifted their priorities.
Under the new strategy, the mills will prioritize sugar output and utilize C-heavy molasses for ethanol production instead of diverting B-heavy molasses or sugarcane juice. This decision is crucial as it allows for maximum sugar recovery during processing. Narpat Singh, joint chairman of Barkatpur Sugar Mill, emphasized that the prevailing market conditions make sugar production more appealing than diverting resources for ethanol. He noted that other mills in the district are considering similar strategies to take advantage of stable domestic sugar prices.
This strategic pivot marks a significant departure from the diversification efforts of recent years, as Bijnor's sugar mills aim to enhance sugar availability for the local market amidst expectations of tighter national supplies. As the crushing season approaches, the focus on sugar production could have far-reaching implications for both local economies and the broader sugar market in India.
