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Sugar output from India's Maharashtra state, top producer of the sweetener in the country, was 18.8 percent higher on year in the first three months of 2011/12 crushing season that started on October 1, an industry official said. The increase in production is because of higher sugar recovery rate and an increase in the number of mills that are operational this year, said the official, who declined to be named.
Millers in the state produced 2.75 million tonnes of sugar by December 31 after crushing 26.57 million tonnes cane, said the official with the Maharashtra State Co-operative Sugar Factories Foundation. "This year 167 sugar mills are operating compared to last year's 155. Weather is also good. So far recovery rate is 10.47 percent compared to 9.8 percent last year," he said.
Cane crushing in the state was delayed due to a tussle between farmers and sugar millers over cane price, but after the commencement it quickly gained momentum on sufficient availability of labour and use of harvesters. Maharashtra is likely to turn in a record 9.3 million tonnes of sugar in 2011/12 as cane availability is forecast to rise to 82.5 million tonnes on a higher area of sowing. India, the world's top sugar consumer, has estimated it will produce 25 million tonnes in the 12 months from October 1, 2011, higher than the country's annual demand of about 22 million tonnes.

Copyright Reuters, 2012

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