Mumbai, February 3 (Commoditiescontrol) Around 507 sugar mills in operation across the country have produced 187.08 lakh tonnes of sugar during early four months of the current cane crushing season which is over 10 lakh tonnes or 5.65% higher as compared to 177.06 lakh tons produced by 491 mills in the corresponding period last season, as per the data released by the India Sugar Mills Association on Thursday.
In Maharashtra, sugar production till 31st January 2022 is at 72.90 lac tons, compared with 63.80 lac tons produced last year same period, i.e. higher by about 9.10 lac tons. In the current 2021-22 SS, 194 sugar mills are operating, as compared to 182 mills which operated last season on 31st January, 2021.
In U.P. 120 sugar mills are in operation and they have produced 50.33 lac tons of sugar till 31st January 2022, compared with 54.43 lac tons produced by similar number mills on the corresponding date of last year.
In case of Karnataka, till 31st January, 2022, 72 operating sugar mills have produced 38.78 lac tons, as compared to 34.54 lac tons produced by 66 sugar mills last year same period.
In case of Tamil Nadu, 24 sugar mills commenced their crushing operations so far for 2021-22 SS and they produced 2.88 lac tons of sugar, as compared to 1.65 lac tons produced by similar number of sugar mills in 2020-21 SS on the corresponding date.
Gujarat has produced 5.75 lac tons of sugar till 31stJanuary 2022 with 15 sugar mills in operation. Last year, similar number of sugar mills were in operation and they had produced 5.55 lac tons of sugar till 31st January 2021.
The remaining States of Andhra Pradesh & Telangana, Bihar, Uttarakhand, Punjab, Haryana and Madhya Pradesh & Chhattisgarh, Rajasthan, Odisha have collectively produced 16.44 lac tons of sugar till 31st January, 2022.
The sugar industry is happy to note that the RE of 2021-22 FY, now increases the budgetary allocation for the industry by about Rs. 2507 crore as compared to the BE (i.e. up from about Rs. 4337 crore to Rs. 6844 crore), primarily to settle claims of sugar mills under schemes for assistance to sugar mills for 2019-20 and export assistance for 2020-21 season. This is a positive decision being taken by the government as almost all these payments are to be made to the sugarcane farmers and therefore will directly reduce the cane price arrears and benefit the farmer community directly.
In a move to support Ethanol Blending Program (EBP), the government has kept a provision of Rs.160 crore in the RE 2021-22 and another Rs.300 crore in BE 2022-23 for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity. This will give further boost to setting up of more ethanol distilleries in the country, which in turn will help reduce the surplus sugar and also increase ethanol supplies for ethanol blending with petrol to meet the target set by the government, thereby reducing the net oil import bill of the country and also improving air quality.
In addition to above, the government has also decided to impose an additional differential excise duty of Rs 2 per litre on unblended fuel from October 1st, 2022.
As per the notification No. GSR 90(E) of Department of Revenue dated 1st February 2022, fuel to be categorised as blended fuel (with ethanol/ methanol) has to conform to BIS specifications from time to time. As the blending currently is @ 10% ethanol with petrol, the demand and actual offtake from OMCs will improve to ensure that they achieve the blended fuel percentage, and thereby avoid the additional excise duty Rs.2 per litre on unblended petrol. This will further encourage the Ethanol Blending Program (EBP) of the government and increase offtake.
Meanwhile, OMC’s have issued the 4th cycle of EOI on 31st January,2022 indicating a requirement of about 95 Crore ltr of ethanol for procurement during ESY 2021-22. As noted from the quantity required, it appears that it has been apparently calculated considering 11% blending. This is another very positive move which will help in enhancing the ethanol supplies thereby diverting more of surplus sugar. Last date for submission of bids is 4th February, 2022.
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