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Mint
13 hours ago
- Business
- Mint
Indias sugar output falls 18 pc to 25.82 mn tonnes till July of this season: NFCSFL
New Delhi, Jul 30 (PTI) India's sugar production declined 18.38 per cent to 25.82 million tonnes till July in the current season ending October, down from the year-ago period, as major producing states reported lower output, the National Federation of Cooperative Sugar Factories Ltd (NFCSFL) said on Wednesday. The cooperative body expects total output to reach 26.11 million tonnes for the full season, well below the 31.9 million tonnes produced in 2023-24. Special crushing operations in Karnataka and Tamil Nadu, which run from June to September, are underway and expected to add some more tonnes to the total. Seven mills are operating in Karnataka compared to one last year, while Tamil Nadu has nine mills running versus 11 in the prior year. According to NFCSFL, Uttar Pradesh, India's largest sugar producer, saw output fall to 9.27 million tonnes till July from 10.36 million tonnes a year earlier. Maharashtra, the second-largest producer, reported a steeper decline to 8.09 million tonnes from 11 million tonnes, while Karnataka dropped to 4.06 million tonnes from 5.16 million tonnes. The production decline was due to reduced sugarcane availability, adverse weather conditions, increased diversion to ethanol production, and pest and disease outbreaks. In a significant development, India achieved 20 per cent ethanol blending with petrol in 2025, five years ahead of its original 2030 target. The milestone underscores the country's push to enhance energy security and reduce carbon emissions while boosting rural incomes. "This shift indicates greater feedstock diversification but also raises important questions about the long-term sustainability of ethanol production from sugarcane, particularly in years of surplus inventory," the NFCSFL said. Maharashtra approved the establishment of multi-feed distilleries across the state on July 23, aligning with the National Bioenergy Policy and India's Ethanol Blending Programme, which now targets 30 per cent blending by 2030. Ex-mill sugar prices have hovered around ₹ 3,900 per quintal following export quota announcements but showed a downward trend since mid-May. Rising festive season demand is expected to stabilise prices, crucial for mills conducting off-season maintenance, the Federation said. Looking ahead, the NFCSFL projects 35 million tonnes of sugar production in 2025-26, citing favourable monsoons, increased cane cultivation in Maharashtra and Karnataka, and a timely hike in the Fair and Remunerative Price by the government. The federation urged policy interventions, including revised ethanol procurement prices, increased minimum selling prices for sugar, and permission for sugar exports to manage excess inventory as per capita consumption declines due to growing health awareness. "Such measures are essential to safeguard the viability of sugar mills, maintain rural employment, and ensure India continues its forward momentum on both the ethanol and cooperative development fronts," said Prakash Naiknavare, Managing Director of NFCSFL.
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Business Standard
16 hours ago
- Business
- Business Standard
India's sugar output falls 18% to 25.82 MT till July of this season: NFCSFL
India's sugar production declined 18.38 per cent to 25.82 million tonnes till July in the current season ending October, down from the year-ago period, as major producing states reported lower output, the National Federation of Cooperative Sugar Factories Ltd (NFCSFL) said on Wednesday. The cooperative body expects total output to reach 26.11 million tonnes for the full season, well below the 31.9 million tonnes produced in 2023-24. Special crushing operations in Karnataka and Tamil Nadu, which run from June to September, are underway and expected to add some more tonnes to the total. Seven mills are operating in Karnataka compared to one last year, while Tamil Nadu has nine mills running versus 11 in the prior year. According to NFCSFL, Uttar Pradesh, India's largest sugar producer, saw output fall to 9.27 million tonnes till July from 10.36 million tonnes a year earlier. Maharashtra, the second-largest producer, reported a steeper decline to 8.09 million tonnes from 11 million tonnes, while Karnataka dropped to 4.06 million tonnes from 5.16 million tonnes. The production decline was due to reduced sugarcane availability, adverse weather conditions, increased diversion to ethanol production, and pest and disease outbreaks. In a significant development, India achieved 20 per cent ethanol blending with petrol in 2025, five years ahead of its original 2030 target. The milestone underscores the country's push to enhance energy security and reduce carbon emissions while boosting rural incomes. "This shift indicates greater feedstock diversification but also raises important questions about the long-term sustainability of ethanol production from sugarcane, particularly in years of surplus inventory," the NFCSFL said. Maharashtra approved the establishment of multi-feed distilleries across the state on July 23, aligning with the National Bioenergy Policy and India's Ethanol Blending Programme, which now targets 30 per cent blending by 2030. Ex-mill sugar prices have hovered around Rs 3,900 per quintal following export quota announcements but showed a downward trend since mid-May. Rising festive season demand is expected to stabilise prices, crucial for mills conducting off-season maintenance, the Federation said. Looking ahead, the NFCSFL projects 35 million tonnes of sugar production in 2025-26, citing favourable monsoons, increased cane cultivation in Maharashtra and Karnataka, and a timely hike in the Fair and Remunerative Price by the government. The federation urged policy interventions, including revised ethanol procurement prices, increased minimum selling prices for sugar, and permission for sugar exports to manage excess inventory as per capita consumption declines due to growing health awareness. "Such measures are essential to safeguard the viability of sugar mills, maintain rural employment, and ensure India continues its forward momentum on both the ethanol and cooperative development fronts," said Prakash Naiknavare, Managing Director of NFCSFL. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
The Hindu
10-06-2025
- Business
- The Hindu
Farmers seeks review of FRP for sugarcane fixed by Centre
Sugarcane growers have urged the State government to seek a review of the Fair and Remunerative Price (FRP) fixed by the Centre for the year 2025-26. A delegation of farmers submitted a memorandum in this regard to tahsildar of Nanjangud near here on Tuesday. President of Karnataka State Sugarcane Growers' Association Hallikerehundi Bhagyaraj described the FRP of ₹3,550 a tonne announced by the Centre for sugarcane with a recovery of 10.25% for the year as 'unscientific and unjust'. Mr. Bhagyaraj said the Centre had increased the FRP by only ₹150 a tonne over the previous year even though the cost of production had increased substantially. 'As the cost of production, labour cost for harvest, transportation, fertilizers, and wages have all increased, this increase of ₹150 a tonne amounts to just 15 paise a kg', he lamented. Contending that a report by Commission for Agricultural Costs and Prices (CACP) had recommended a price of ₹4,500 a tonne, Mr. Bhagyaraj alleged that the Centre had increased the FRP by only ₹150 a tonne due to 'pressure from sugar factory owners and capitalists'. Lok Sabha members should also put pressure on the Centre to re-evaluate the FRP rate, he said. The farmers' body have demanded the installation of weighing machines in front of all sugar factories by the Agriculture Produce Marketing Committees (APMC) and the Department of Co-operation. 'Digital SMS alerts should be sent to the farmers immediately after weighing,' said Mr. Bhagyaraj, in the statement. Demanding bilateral agreements between the sugar mills and the farmers, he said a committee comprising local farmers and experts should be constituted to prevent fraud in recovery rates of sugarcane. The income statements of the sugar mills should be reviewed by both the State government and the Centre, he said while demanding distribution of excess profits to the farmers. The government should intervene to protect the interests of the farmers, and that the sugar factories should be made to bear the costs of transportation and harvesting, he said. The association has demanded immediate settlement of last year's pending dues amounting to ₹950 crore, and that the Hullahalli road be immediately repaired, and the Hura lift irrigation project be completed soon.
Mint
02-06-2025
- Business
- Mint
Sugar industry seeks ethanol price revision as blending share drops to 28 pc
New Delhi, The sugar industry has demanded a revision of ethanol procurement prices and extension of blending targets beyond 20 per cent, as the sector's contribution to the national ethanol programme has declined sharply from 73 per cent to just 28 per cent. The industry has also demanded accelerated promotion and manufacturing of Flex-Fuel Vehicles to boost ethanol demand and ensure market preparedness for higher blending, National Federation of Cooperative Sugar Factories said in a statement. The demand was made by the industry delegation, led by Ravi Gupta, Chairman of IFGE's Sugar Bioenergy Group, and expert Member on the Board of NFCSF, in a meeting held at the PMO recently, it said. In 2022-23 season , NFCSF said the sugar industry reached a significant milestone by diverting 43 lakh tonnes of sugar towards ethanol production, enabling the supply of 369 crore litres of ethanol, which accounted for 73 per cent of total ethanol blended with fuel across the country. However, in 2023-24, ethanol supply from sugar-based feedstocks declined to 270 crore litres, contributing only 38 per cent to the national blending programme. "This is projected to fall further to 250 crore litres in 2024-25, making up just 28 per cent of the total blending target of 900 crore litres," it said in a statement. The main reason for this drop is that ethanol procurement prices have not been increased in line with the rise in the Fair and Remunerative Price of sugarcane, making ethanol production less profitable for sugar mills. Although there is potential to divert up to 40 lakh tonnes of sugar into ethanol this year, only 32 lakh tonnes are expected to be diverted. "This shortfall is due to the gap between ethanol prices and better returns from selling sugar directly in the domestic market," NFCSF said. As a result, India's ethanol production capacity of 952 crore litres per year including 130 crore litres from multi-feed distilleries is being under-utilised. The Ethanol Blending Programme has emerged as a vital solution to the longstanding issue of surplus sugar stocks under the National Policy on Biofuels – 2018, which set an ambitious target to divert 60 to 70 lakh tonnes of excess sugar annually towards ethanol production. Since the policy's inception, India's ethanol production capacity has expanded significantly from 518 crore litres in 2018 to 1,800 crore litres in 2025. Correspondingly, the ethanol blending rate with petrol has risen sharply from 4.22 per cent to 18.61 per cent as of April 30, 2025. Sugar production has reached 286.9 lakh tonnes as on April 30 of the ongoing 2024-25 season, out of which 30 lakh tonnes have been diverted for ethanol. The industry has additionally suggested evaluating the possibility of blending ethanol in diesel as a future strategy to expand ethanol use across fuel types. NFCSF noted that diverting sugar to ethanol does not reduce the actual production of sugar but helps to manage surplus sugar stocks, stabilise market prices, improve the financial health of sugar mills, and ensure timely payments to farmers. This article was generated from an automated news agency feed without modifications to text.
Time of India
02-06-2025
- Business
- Time of India
Sugar industry seeks ethanol price revision as blending share drops to 28% from 73%
The sugar industry has demanded a revision of ethanol procurement prices and extension of blending targets beyond 20%, as the sector's contribution to the national ethanol programme has declined sharply from 73% to just 28%. The industry has also demanded accelerated promotion and manufacturing of Flex-Fuel Vehicles (FFVs) to boost ethanol demand and ensure market preparedness for higher blending, National Federation of Cooperative Sugar Factories (NFCSF) said in a statement. The demand was made by the industry delegation, led by Ravi Gupta, Chairman of IFGE's Sugar Bioenergy Group, and expert Member on the Board of NFCSF, in a meeting held at the PMO (Prime Minister's Office) recently, it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sasha Meneghel já está irreconhecível após sua recente transformação. 33 Bridges Undo In 2022-23 season (October-September), NFCSF said the sugar industry reached a significant milestone by diverting 43 lakh tonnes of sugar towards ethanol production , enabling the supply of 369 crore litres of ethanol, which accounted for 73 per cent of total ethanol blended with fuel across the country. However, in 2023-24, ethanol supply from sugar-based feedstocks declined to 270 crore litres, contributing only 38 per cent to the national blending programme. Live Events "This is projected to fall further to 250 crore litres in 2024-25, making up just 28 per cent of the total blending target of 900 crore litres," it said in a statement. The main reason for this drop is that ethanol procurement prices have not been increased in line with the rise in the Fair and Remunerative Price (FRP) of sugarcane , making ethanol production less profitable for sugar mills . Although there is potential to divert up to 40 lakh tonnes of sugar into ethanol this year, only 32 lakh tonnes are expected to be diverted. "This shortfall is due to the gap between ethanol prices and better returns from selling sugar directly in the domestic market," NFCSF said. As a result, India's ethanol production capacity of 952 crore litres per year -- including 130 crore litres from multi-feed distilleries -- is being under-utilised. The Ethanol Blending Programme (EBP) has emerged as a vital solution to the longstanding issue of surplus sugar stocks under the National Policy on Biofuels - 2018, which set an ambitious target to divert 60 to 70 lakh tonnes (LMT) of excess sugar annually towards ethanol production. Since the policy's inception, India's ethanol production capacity has expanded significantly from 518 crore litres in 2018 to 1,800 crore litres in 2025. Correspondingly, the ethanol blending rate with petrol has risen sharply from 4.22 per cent to 18.61 per cent as of April 30, 2025. Sugar production has reached 286.9 lakh tonnes as on April 30 of the ongoing 2024-25 season, out of which 30 lakh tonnes have been diverted for ethanol. The industry has additionally suggested evaluating the possibility of blending ethanol in diesel as a future strategy to expand ethanol use across fuel types. NFCSF noted that diverting sugar to ethanol does not reduce the actual production of sugar but helps to manage surplus sugar stocks, stabilise market prices, improve the financial health of sugar mills, and ensure timely payments to farmers.
