This is about the Sugar Industry of India before that take a look at the Global sugar Industry. Global sugar production for MY (marketing year) 2018-19 decline by 12 million tonnes to 183 million tonnes.
Global stocks were expected to reach 53 million metric tonnes (raw value) as a massive stock-building in India was expected to more than offset the impact from lowered stock levels in China and the European Union.
Largest Producer of Sugarcane in the World
India is the Largest Producer of Sugarcane in the World
Sugar Industry India [largest producer of sugarcane in india]
The Indian sugar industry is the second largest agro-based industry in India. It supports ~50 million farmers and their families, providing direct employment to ~0.6 million skilled and semi-skilled persons in sugar and its allied industries.
India’s 2018-19 sugar production was 33.0 million tonnes compared to 32.3 million tonnes produced in the previous year. Output in Uttar Pradesh, Maharashtra and Karnataka accounted for a ~80% share of the country’s production.
However, this figure was after considering ~0.50 million tonnes of sugar diversion towards ethanol manufacture. Tenders for ethanol procurement during 2018-19 were signed by oil marketing companies. The result: for the first time there were bids for 48.5 crore litres of ethanol from B-heavy molasses and 1.84 crore litres from sugar cane juice.
Largest Producer of Sugarcane in India
Uttar Pradesh is the Largest Producer of Sugarcane in India. As many as 30 districts of Uttar Pradesh produce sugarcane with the western part of the state, comprising the upper Ganga-Yamuna Doab, Rohilkhand, and trans-Saryu areas, together accounting for ~70% share of the total sugarcane output of the State. The State accounted for ~36% of India’s sugar production.
Sugar Production in Uttar Pradesh
Uttar Pradesh [largest sugarcane producing state in india] produced 11.68 million tonnes of sugar till 15th May 2019 compared to 12.1 million tonnes in the corresponding period of the previous season. Currently Uttar Pradesh is the Largest Producer of Sugarcane in India.
Sugar Factory in Maharashtra
Maharashtra: Though Maharashtra is the second-largest producer of sugarcane in India, it lags behind Uttar Pradesh, accounting for ~32% share India’s sugar production.
Mills in Maharashtra produced 10.72 million tonnes of sugar till 15th May 2019 compared to 10.7 million tonnes in the corresponding period of the previous season
Karnataka: Karnataka is the third largest sugarcane producing state of India with more than 11% share of production. Sugar production in Karnataka stood at 4.33 million tonnes compared to 4.5 million tonnes in the previous season.
Price Trend of Sugar
During April and May 2018, sugar realizations declined to ~Rs 26 per kg on account of the anticipated higher production during the sugar season 2017-18. Further, with anticipated higher sugar production in the current season, millers were in a crisis with cane arrears mounting. To arrest the downfall in prices, the Central Government announced the Minimum Selling Price (MSP) of sugar at Rs 29 per kg. The MSP was increased to Rs 31 per kg during February 2019.
Fair and Remunerative Price (FRP): The FRP for sugar season 2018-19 was fixed at Rs 275 per quintal of sugarcane linked to a basic recovery of 10.00% and subject to a premium of Rs 2.75 per quintal of sugarcane for every 0.1 percentage point increase above that level.
State Advised Price (SAP): The SAP for the sugar season 2018-19 was kept unchanged at Rs 315 per quintal of the normal variety of sugarcane.
Uttar Pradesh [largest producer of sugarcane in India] produced 11.68 million tonnes of sugar