Maharashtra Sugar Production Set to Drop by 10 Lakh Metric Tonnes
Drought conditions are projected to significantly impact sugar and ethanol production in Maharashtra this season.
Sugar production in Maharashtra is expected to decrease to between 89 and 90 lakh metric tonnes.
Ethanol production may decline by approximately 30% due to reduced sugarcane availability.
21 sugar mills still owe farmers a total of Rs 119 crore in dues.
Maharashtra is bracing for a notable decline in sugar production this season, with estimates suggesting a drop to between 89 and 90 lakh metric tonnes. This represents a decrease of nearly 10 lakh metric tonnes compared to last year's output of 99 lakh metric tonnes, primarily due to irregular rainfall and drought-like conditions affecting sugarcane yields.
The Agriculture Department and an expert committee have projected that sugarcane crushing will fall to around 900 lakh metric tonnes this season, down from approximately 1,045 lakh metric tonnes last year. This reduction in sugarcane availability is expected to shorten the average crushing season to about 90 days, compared to 104 days in the previous season, which could adversely impact the operations and revenues of sugar mills across the state.
Dr. Sanjay Kolte, the Maharashtra Sugar Commissioner, confirmed that 210 sugar factories operated last season, with 103 factories already receiving licenses for the upcoming season. The licensing process for an additional 109 factories is currently underway. However, the reduced sugarcane supply poses challenges for these mills, particularly in maintaining production levels.
Ethanol production, a significant aspect of Maharashtra's sugar industry, is also facing hurdles. The state's total installed ethanol production capacity is estimated at around 296 crore litres, but actual output is contingent on the availability of raw materials and government policies. Nationally, the demand for ethanol from oil marketing companies is estimated at about 1,100 crore litres, with Maharashtra contributing approximately 100 to 120 crore litres. Current restrictions on ethanol procurement from sugarcane juice and syrup may further limit production options for sugar mills, potentially increasing reliance on alternative sources such as C-heavy molasses.
In addition to production challenges, financial issues persist within the industry. While 99.71% of the sugar factories have cleared their Fair and Remunerative Price (FRP) dues to farmers, 21 factories still owe a total of Rs 119 crore. Some of these factories have reached agreements with farmers to settle their payments by October 31, but those that fail to comply may face punitive measures. Discussions are ongoing at both central and state government levels regarding demands raised during recent protests by farmers, led by Raju Shetti of the Swabhimani Shetkari Sanghatana, with decisions expected soon.
