With over 50% of country’s unsold sugar stock, Maharashtra set to start next crushing season

Unlike other sugar-producing states, such as Karnataka, where the industry stakeholders decide on the start of the crushing season, in Maharashtra, it is the prerogative of the state government. Mills that start their operation before that day are liable to pay a fine of Rs 1,000 for each tonne of cane crushed.

As many as 193 mills in Maharashtra are expected to start the season this year. Last season, Maharashtra had crushed 1014 lt of cane and produced 106lt of sugar.

Unsold stock in Maharashtra can be a problem for mills but given the rare bull run in international markets, a slight increase in exports is expected, insiders said. Drought in Brazil had seen Indian sugar gaining traction with millers exporting sugar without the government subsidy also– Around 70 lt of sugar was exported of which 5-10 lt was without subsidy. Maharashtra was given a target of 18 lt of sugar for exports, which the state has met. Projections for the upcoming season talk of exports of around 20 lt of sugar from the state.

Bhairavnath Thombare, president of the Western India Sugar Mills Association (WISMA), said the industry leaders have appealed to their member mills to produce only raw sugar for the first three months. “This will help in exports and also ease the unsold burden on the sector,” he said. Mills should take steps to divert towards ethanol production and ensure they meet the targets set by the government, he added.