Maharashtra’s sugar production is expected to decline by nearly 10 lakh metric tonnes this season as irregular rainfall and drought-like conditions affect sugarcane availability. Ethanol production could also fall by around 30%, creating additional challenges for the state’s sugar industry.
Maharashtra Sugar Commissioner Dr Sanjay Kolte estimated that sugar production would remain between 89 lakh and 90 lakh metric tonnes, compared with 99 lakh metric tonnes last season.
Sugarcane Crushing and Mill Operations May Decline
Estimates by the Agriculture Department and an expert committee suggest that sugarcane crushing could fall to around 900 lakh metric tonnes this season, down from approximately 1,045 lakh metric tonnes last year.
The reduced availability of sugarcane is also expected to shorten the crushing season to around 90 days, compared with 104 days previously. A shorter operating period could affect sugar mills’ production volumes and revenues.
Of the 210 sugar factories that operated last season, 103 have received licences for the upcoming crushing season. The licensing process for another 109 factories is underway.
Ethanol Production Faces a 30% Decline Risk
Maharashtra has invested heavily in ethanol manufacturing, with installed production capacity estimated at around 296 crore litres. However, actual production and sales depend on raw material availability, central government policies and demand from oil marketing companies.
National ethanol demand from oil marketing companies is estimated at approximately 1,100 crore litres, with Maharashtra accounting for around 100 crore to 120 crore litres.
About 9% of sugar is diverted towards ethanol production annually. However, restrictions under the Centre’s current procurement policy for ethanol made from sugarcane juice, syrup and B-heavy molasses could limit production options.
Mills may consequently depend more on C-heavy molasses and grain-based ethanol. Lower sugarcane supplies could further complicate operations and affect returns on investments in distillery projects.
Sugar Mills Still Owe Farmers ₹119 Crore
Meanwhile, most factories have cleared their Fair and Remunerative Price (FRP) dues to sugarcane farmers. Kolte said 99.71% of the 210 factories that operated last season had paid the amounts due.
However, 21 factories still owe farmers a combined ₹119 crore. Around 12 to 13 factories have reportedly reached agreements to clear outstanding payments by October 31. The remaining mills could face punitive action if they fail to settle their dues.
Kolte also said central and state-level meetings had been held to discuss demands raised during a protest led by Swabhimani Shetkari Sanghatana chief Raju Shetti in Kolhapur.
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