agribazaar
September 27, 2021
Sowing period (Sugarcane): September to January
Harvesting period (Sugarcane): February to April
Crop season: Kharif
Key growing regions:
- Uttar Pradesh – Aligarh, Muzaffarnagar, Ghaziabad, Lakhimpur
- Maharashtra – Kolhapur, Pune, Ahmednagar, Aurangabad, Nanded, Amaravati, Nagpur
- Karnataka – Belgaum, Bagalkot, Bijapur, Mandya, Mysore, Chamrajnagar, Bidar
- Tamil Nadu – Modak, Attur, Gullapuram, Sankarapuram, Arantangi
Production trend and Stock position:
- As per the Ministry of Agriculture fourth advance estimate released on August 11, 2021, Sugarcane production for FY 2020-21 was 3,992.53 lakh metric tonne (LMT) compared to FY 2019-20 which was 3,705 LMT, up by 7.76 percent
- The central government had cleared ₹ 1,800 crore out of the ₹ 3,500 crore budget in subsidy to mills so far for exporting a mandated quantity of 6 million tonnes (MMT) of sugar in the 2020-21 season ending this month
- The Department of Food & Public Distribution has allocated 22 LMT monthly sugar sales quota for September 2021 which is 1 LMT higher than that of August 2021
- According to Ministry of Agriculture, the sowing acreage of Sugarcane as on September 17, 2021 was 54.97 lakh hectares (lh) up by 1.65 percent compared to 54.08 lh during the corresponding period
Monsoon Update
For the country as a whole, cumulative rainfall during this year’s monsoon season till September 15, 2021 is below Long Period Average (LPA) by 4 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:
Market commentary: Price outlook
- The government had fixed Fair and Remunerative Price (FRP) for sugarcane at ₹ 290 per quintal for the current 2021-22 marketing year (October to September), up by 1.75 percent in comparison to ₹ 285 per quintal 2020-21
- Overall Sugar prices are likely to be slightly bullish in immediate / short term
- Domestic sugar prices had increased by ₹ 300 to 400 per quintal in August 2021, as it was the end of ‘Shravan’ month and there were a few auspicious days and prominent festivals across India, along with simultaneous easing of state-wise lockdown across the country, the market had witnessed a good demand resulting in higher prices of sugar
- There are two kinds of price regimes for sugarcane, one is the Centrally FRP, which is announced by the Union government and the second is State Advised Price (SAP) applicable to states such as Uttar Pradesh (UP), Haryana, Punjab and Uttarakhand where FRP does not exist
- Currently the SAP price in UP is ₹ 325 per quintal, whereas in Punjab, the rate is ₹ 360 and in Haryana ₹ 362 and there is a possibility of a hike in remunerative prices
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