Maharashtra: Industry estimates 102 lakh tonnes of sugar manufacturing

As Maharashtra’s sugarcane crushing season enters its final leg, sugar manufacturing is anticipated to be 102 lakh tonnes, in line with business estimates, as towards the 95 lakh tonnes estimate put forth by the sugar commissioner.
Bhairavnath B Thombare, president of West Indian Sugar Mills Association (WISMA), the umbrella physique of personal millers within the state, stated they arrived on the 102 lakh tonnes determine after deliberation on Thursday. “Already, mills in Solapur have started closing and more mills will end their season in the days to come. We expect mills in Ahmednagar and Marathwada to end operations in March,” he stated. Mills in Kolhapur, Pune, Satara and Sangli are anticipated to complete operation by finish of April. Till date, the state has produced 82 lakh tonnes of sugar.
Thombare and different personal millers had initially estimated 108 lakh tonnes of sugar manufacturing, which has now been revised to 102 lakh tonnes. “This is mainly due to lower than expected yield, especially in Solapur and Ahmednagar,” he stated.
WISMA’s estimates, business insiders have identified, are considerably greater than the estimates of the commissionerate. At least 12 lakh tonnes of sugar has been diverted in direction of manufacturing of ethanol with the state anticipated to supply 105 crore litres of the gas additive.
Maharashtra’s manufacturing figures in the previous couple of seasons have been a trigger for concern as they invariably are on the upper facet of estimates. Excess manufacturing has put provide facet strain on sugar gross sales with millers struggling to promote their inventory. Incentivisation of exports has helped cut back stock of mills.
Earlier this season, sugar millers in Maharashtra had began misery gross sales beneath the federal government declared Minimum Support Price (MSP) of Rs 3,100 per quintal. Thombare stated {that a} 20 per cent discount in manufacturing by Uttar Pradesh modified the feelings of the market. “At present, we see demand coming back to markets at MSP,” he stated.
Maharashtra’s sugar commissioner had issued notices to sugar mills warning them to not promote beneath the MSP. Till date, no mill has been recognized or penalised for beneath MSP gross sales.