Corona infection worries sugar industry, mills owe 23,000 crore: Corona infection worries the sugar industryOn April 8, 2021 by admin
Prakash Naiknavre said during a special interaction with IANS that during the lockdown last year, domestic consumption of sugar had decreased by about 1 million tonnes during April, May and June due to no demand for the Horeka (Hotel, Restaurant, Canteen) segment.
Sugar Mill (Photo Credit: File)
- Estimation of production of 302 lakh tonnes of sugar
- Sugar production 274 lakh tonnes in the previous season
- 23 thousand crore dues of farmers on sugar mills
The growing concern of corona infection in the country increased the concern of the sugar industry, as the demand for sugar which usually increases in summer is expected to be affected by restrictive steps like lockdown. In the face of the impact on domestic demand, the crisis of the sugar industry already struggling with the lack of cash can be deepened. On the other hand, the arrears of sugarcane farmers on sugar mills have been about 23,000 crores. Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories (NFCSF), an organization of cooperative sugar mills in the country, said sugarcane arrears could rise further due to lack of cash with the sugar industry. If the arrears reach 25,000 crores, then it will be a very bad situation for the industry.
Prakash Naiknavre said during a special interaction with IANS that during the lockdown last year, domestic consumption of sugar had decreased by about 1 million tonnes during April, May and June due to no demand for the Horeka (Hotel, Restaurant, Canteen) segment. He said that the way the corona’s havoc is getting deepened again, the situation seems to be more or less similar. He said that if the Chinese demand for summer is affected, the industry’s crisis may increase further.
Sugar demand increases during the summer season in ice cream, cold drinks and other soft drinks and sorbet industries, but restrictions on wedding and public ceremonies and the Horeka segment may affect sugar demand. The NFCSF Managing Director said, “The country is expected to produce more than 300 lakh tonnes of sugar again this year, while the consumption is not that much. After this, the mills are losing Rs 3.50 on the sale of sugar per kg because the sugar The minimum selling price (MSP) of Rs. 31 per kg while the average cost of mills is Rs. 34.50 per kg. Hence, the sugar cane farmers are finding it difficult to pay the sugar. “
He said that this is the reason that industry is constantly demanding from the government to increase the MSP of sugar. He said that the main reason for the cash crisis that mills have today is the loss in selling sugar. Until the MSP of sugar increases, the economic health of the industry will not improve and the mills will continue to face difficulties in paying the dues of the sugarcane farmers.
However, the good news is that India is doing well on the export front. Naiknavre said that in the current sugar season 2020-21 (October-September) 45 million tonnes of export transactions have been done so far, out of which 28 lakh tonnes have been lifted from the sugar mills’ warehouses. He said that the export quota of 60 lakh tonnes of sugar will be completed in the current season. The demand for Indian sugar remains in the world markets at this time, because in Brazil, the season starts in April and the new season has not yet landed in its sugar market. After Brazil, India is the largest producer of sugar in the world.
According to ISMA estimation, the production of sugar in the current season in India may be 302 lakh tonnes as compared to 274 lakh tonnes of sugar production in the country in the previous season. Including last year’s outstanding stock of 107 lakh tonnes, the total supply of sugar in the country this year is estimated to be 409 lakh tonnes in the current season, while domestic consumption is estimated to be around 260-265 lakh tonnes. After the export is 60 lakh tonnes, the outstanding stock for the next season will be less than 90 lakh tonnes.
First Published : 08 Apr 2021, 06:20:10 PM
- CSKvsPBKS 200th match made memorable for ms Dhoni CSK defeated PBKS CSKvsPBKS: 200th match made memorable for Dhoni, CSK defeated PBKS
- Mehbooba backs SPO, says even women arenot spared in Naya Kashmir
- More Than Three Forms Of Corona Found In 1189 People In India – New Look Of Kovid: More Than Three Forms Of Corona Found Among 1189 People
- West Bengal, Now Election Campaign Will End 72 Hours Agowest Bengal, Now Election Campaign Will End 72 Hours Ago
- CSK vs PBKS Deepak Chahar superb bowling CSK needs so many runs to win ipl live streaming CSK vs PBKS: Deepak Chahar’s superb bowling, CSK needs so many runs to win, know