According to a senior officials from the Maharashtra state government, there has been a reduction in the estimated sugar production by nearly 16% due to the early closure of mills caused by the limited availability of sugar cane. This could affect Maharashtra, which is India’s leading sugar-producing state.
The decrease in sugar production from Maharashtra, which is responsible for over a third of India’s sugar output, could result in inability to authorize additional exports.
This could potentially provide support for global sugar prices and give a chance for rivals like Brazil and Thailand to increase their exports. Maharashtra’s sugar commissioner, Shekhar Gaikwad, revealed that the state might only produce between 10.7 and 10.8 million tonnes of sugar during the 2022/23 marketing year, which began on October 1, as opposed to the previously estimated 12.8 million tonnes.
In the 2021/22 season, sugar mills in Maharashtra were able to operate until mid-June due to a record-breaking crop harvest. However, the state’s sugar production has been unpredictable in the past and has caused significant fluctuations in the global sugar market.
As of March 26, Maharashtra has produced 10.38 million tonnes of sugar, which is lower than the 11.6 million tonnes produced during the same period last year. Out of the 210 sugar mills that commenced operations this year, 155 mills have stopped crushing as of March 26.
During the 2021/22 season, Maharashtra was able to achieve a record-breaking production of 13.7 million tonnes of sugar, which was higher than the initial estimate of 11.2 million tonnes. As a result, New Delhi was able to authorize a record-breaking export of 11.2 million tonnes of sugar.
In the current season, India’s mills were initially allowed to export only 6.1 million tonnes of sugar in the first tranche. However, the industry had anticipated that the government would authorize an additional export of roughly 2 million tonnes in a second tranche.
A government official, who wished to remain anonymous, stated that due to the significant reduction in Maharashtra’s sugar production, there will not be any additional exports authorized by the government.
India’s primary sugar export destinations include Indonesia, Bangladesh, Malaysia, Sudan, Somalia, and the United Arab Emirates.