Commodity Outlook – Sugar

Sowing period (Sugarcane): September to January
Harvesting period (Sugarcane): February to April
Crop season: Kharif

Key growing regions:

  1. Uttar Pradesh – Aligarh, Muzaffarnagar, Ghaziabad, Lakhimpur
  2. Maharashtra – Kolhapur, Pune, Ahmednagar, Aurangabad, Nanded, Amaravati, Nagpur
  3. Karnataka – Belgaum, Bagalkot, Bijapur, Mandya, Mysore, Chamrajnagar, Bidar
  4. Tamil Nadu – Modak, Attur, Gullapuram, Sankarapuram, Arantangi

Production trend and Stock position:

  • As per the Ministry of Agriculture second advance estimate released on February 24, 2021, Sugarcane production for FY 2020-21 was 3,976.57 lakh metric tonne (LMT) compared to FY 2019-20 which was 3,705 LMT, up by 7.33 percent
  • According to Indian Sugar Mills Association (ISMA), Sugar mills have produced 303.60 LMT of sugar till May 15, 2021
  • Sugar mills in Maharashtra cleared 93.63 percentage of its dues pending till May 15, 2021. They paid ₹ 21,454 crore out of ₹ 22,888 crore of the fair and remunerative price (FRP) to its farmers
  • On May 20, 2021 the Central Government of India slashed subsidy on Sugar exports from ₹ 6,000 per MT to ₹ 4,000 per MT with immediate effect under Maximum Admissible Export Quota (MAEQ) scheme for current marketing year 2020-21 (October-September)
  • India has made 57 LMT of export contract in the current Sugar season 2020-21, according to various media sources
  • The Department of Food & Public Distribution has allocated 22 LMT monthly Sugar sales quota for May 2021 which is 5 LMT higher than that of May 2020

Monsoon Update

For the country as a whole, cumulative rainfall during this year’s pre-monsoon season till May 20, 2021 is normal Long Period Average (LPA) by 0 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Market commentary: Price outlook

  • Overall Sugar prices are likely to trade range bound with a firm tone in immediate / short term
  • Major markets were closed in India due to an increase in coronavirus cases across the nation and ongoing lockdown restrictions in certain states

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