January 07, 2015
SugarOnline.com
The sugar production in Uttar Pradesh, India's second largest sugar producer, has touched 2 million metric tonnes in the current crushing season, according to India's Business Standard newspaper.
As per the latest statistics, 118 operational mills had collectively crushed nearly 21.50 million tonne of cane and produced almost 2 mn tonne of the sweetener.
The sugar output is about 35% higher compared to last season, when only a little over 1.46 million tonne had been produced by this time, since crushing operations had been invariably delayed during 2013-14.
While 94 mills are running in private sector, the cooperative sector mills number 23 and UP State Sugarcane Corporation accounts for the lone mill participating in crushing.
The bulk of sugar has so far been produced by the private mills at over 1.8 million tonne.
The sugar recovery (ratio of sugar extracted from cane) percentage stands at 9.25%, which historically has been lower than corresponding figures clocked by mills in Maharashtra and Karnataka due to their higher juice content in cane and better varieties.
Meanwhile, cane arrears have started to mount for current season as well with INR11.56 billion (US$182.7 million) (including interest) pending as 'payable dues' on mills, of which INR9.87 billion are accounted for by private millers.
While total dues stand at INR53.81 billion so far, the state government had allowed mills to pay Rs 40 per quintal of the INR280 per quintal of the state cane price by the end of the crushing season.
This reduced their current liability to INR46.09 billion. Besides, the mills get 14 days to settle dues, the current 'payable' arrears stand at INR32 billion, of which the mills had paid INR20.49 billion.
The state sugar sector is facing a crisis of sorts with the mills alleging high cane price juxtaposed to falling sugar prices, dumping of sugar produced in other states to UP, low sugar recovery, lack of incentives etc.
Reference: http://sugaronline.com/website_contents/view/1238885#sthash.Co1VUjiN.dpuf