Commodity Outlook – Sugarcane

Sowing period (Sugarcane): June to February
Harvesting period (Sugarcane): October to May
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:

  • Sugar production in marketing year (MY) 2019-20 (October-September) is expected to decline at nearly 8% y-o-y.
  • For MY 2018-19 the production estimates based on current sowing pattern of Sugarcane is explained in the form of an equation (below figures are in MMT):
  • Opening Stock (OS) + Production (P) = Domestic demand (DD) + Export (E) + Closing Stock (CS)

OS + P = DD + E + CS
10.7 + P = 26 + 3 + 14.7
P = 26 + 3 + 14.7 – 10.7
P = 33
Hence the production estimate is 33 MMT for MY 2018-19.

  • Sugar millers in Maharashtra have raised an alert of a possible drastic dip in production as Maharashtra accounts for about 34% of India’s total Sugar production. It may end up producing less than half of 107.2 Lakh tonnes (lt), its output last season.

Note: On February 14, 2019 Government hiked Minimum Selling Price (MSP) of Sugar to Rs. 31 per kg (Rs. 3,100 per quintal) from Rs. 29 per kg for the year 2019-20 hence there was a spike in the price.

Market commentary: Price outlook

  • Sugar M grade is currently trading above MSP levels in a range of Rs. 3,150 – 3,170 per quintal and is expected to move upwards to Rs. 3,200 in the immediate to short term.
  • Fair and remunerative price (FRP) of Sugarcane for 2018-19 is Rs. 275 per quintal compared to Rs. 255 per quintal in 2017-18.
  • Sugar prices are expected to trade on a higher end according to Agriwatch website due to good supply from sugar mills in the physical markets. There are also expectations of weak cane crushing this season in key producing states of UP, Maharashtra and Karnataka which contribute 55% of Sugar.

More Articles for You

Healthy Tips for Healthy Soybean

Soybean is a short-day plant requiring hot weather for optimum production. They are adapted to grow in many soils (pH …

Weekly Soybean Report

As depicted in the adjacent chart Soybean prices in major trading centers have cooled off on higher availability against subdued …

Weekly Maize Report

Current Market Developments: During this week, Maize prices in most of the spot markets have declined tracking subdued demand in …

Go-to Guide for Good Groundnuts

Groundnuts are a popular food source worldwide, consumed either as peanut butter or groundnut oil or simply as a confectionary …

Weekly Wheat Report

Key Market Developments: During the week, Wheat prices in most of the spot markets of Delhi, Uttar Pradesh, Madhya Pradesh, …

Vertical Farming in India

Agriculture in India is often affected by soil degradation, desertification, and extreme weather conditions such as floods and droughts. As …

WhatsApp Connect With Us