Government and industry keeping a close eye on the upcoming production of sugarcane and sugar

13-Aug-2024 09:12 PM

New Delhi. The Union Agriculture Ministry has estimated the sugarcane sowing area at the national level to increase by 57 thousand hectares from 57.11 lakh hectares last year to 57.68 lakh hectares this time,

but the apex industry body ISMA has expressed the possibility of its area decreasing by 6 percent to 56 lakh hectares.

Due to good monsoon rains, sugarcane crop is growing normally in most of the major producing areas, but there is also a possibility of damage to the crop due to floods and waterlogging in some areas.

The new marketing season for crushing sugarcane and production of sugar will formally start from October 1, 2024 and till then the government wants to keep a close eye on the condition of the crop as the Meteorological Department has predicted more than normal average rainfall in August and September.

If the crop is not severely damaged in the coming weeks, sugar production may be normal in the 2024-25 season, while the overall supply and availability situation may remain better with huge backlog stocks.

In such a situation, the government will have the option to either decide to increase the amount of sugar used in ethanol production or allow the start of commercial export of sugar.

The industry expects a positive decision from the government on both these fronts. It is also possible that the decision to export a limited quantity of sugar and increase its use in ethanol production may be taken simultaneously.