Despite initial skepticism, Maharashtra’s sugar production figure is expected to cross the 60-lt figure.

The 2019-20 sugarcane crushing season in Maharashtra has entered its final phase, with 22 of the 131 mills closing down their crushing operations. Till date, sugar mills in the state have crushed 447.24 lakh tonnes (lt) of cane and produced 49.23 lt of sugar. Most mills in the state are expected to end their operations by the end of March, making the present season one of the shortest in the last five years.

The current crushing season had started under the spectre of drought in Marathwada as well as crop loss due to excessive rain in western Maharashtra. Worried about the duration of the season and the overall production amount, millers from western Maharashtra had demanded a subsidy. Many parts of the state had also faced a problem of shortage of labourers to harvest cane.

Despite initial skepticism, Maharashtra’s sugar production figure is expected to cross the 60-lt figure. Of the 22 mills which have closed their season, 10 are from Aurangabad division, four from Pune division and three each from Solapur and Ahmednagar divisions. One mill each has closed in the divisions of Kolhapur and Amravati. Millers have reported healthy sugar recovery, which is expected to continue till the end of the season.

Domestic prices in Maharashtra continue to hover around the Rs 3,110-3,160 per quintal mark, but the healthy rise in sugar prices in international markets have made overseas markets a better option. According to industry sources, nearly 32 lt of export contracts have been finalised, of which 18 lt have already left the country. Majority of the contracts have been cornered by mills in Uttar Pradesh, with Maharashtra millers warming up to the export markets now.

Export realisations are around Rs 3,300-3,400 per quintal, higher than the domestic prices.

Meanwhile, some mills that had failed to export their sugar quota in the 2018-19 season have demanded that they be allowed to fulfill their previous quota this season. The better prices, they say, will help them get over the financial stress which they faced last year. “The government should look into this… as till the excess sugar stock leaves the country, sugar prices will not improve,” said an industry insider.