Year-on-year sugar production till January 31 up by 5.6%, says ISMA
Indian Sugar Mills Association (ISMA) stated that the YoY production of sugar rose 5.6% till 31st January, 2022. According to ISMA, 507 sugar mills were operating in the country on January 31, 2022, producing 187.08 million tonnes of sugar. That is 10.02 lac tonnes more than the previous season's production for the same period.
Sugar production in Maharashtra is at 72.90 million tonnes (MT) until 31st January, 2022, a 9.10 MT increase. There are 194 sugar mills working in the current 2021-22 sugar season, compared to 182 mills functioning last season on January 31, 2022. In Uttar Pradesh, 120 sugar mills are in operation, producing 50.33 million tonnes of sugar compared to 54.43 million tonnes last year and in Karnataka, 72 sugar mills were operational producing 3.87 MT compared to 3.45 MT.
For FY22 there is an increase in the budgetary allocation for the industry by about Rs. 2,507 crore (US$ 334.7 million) to settle claims of sugar mills and provide assistance in exports. This will also help in reducing cane prices eventually helping the farmers. In order to support the Ethanol Blending Program (EBP), the government has set aside Rs.160 crore (US$ 21.4 million) in FY22 and another Rs. 300 crore (US$ 40 million) in FY23 for providing financial assistance to sugar mills for the enhancement and augmentation of ethanol production capacity. This will help in managing the surplus sugar, improve air quality and also reduce the net oil import bill of India.
The government has also decided to levy an additional Rs 2 (US$ 0.026) per litre differential excise charge on unblended petrol beginning 1st October, 2022. The fuel also has to be categorised as blended fuel (with ethanol/ methanol) to meet BIC specifications as stated in the No. GSR 90(E) notification of Department of Revenue.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.