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LATEST NEWS UPDATES | 2015 drought effect: Sugar yield sees worst fall in 10 years, prices set to rise -Bhavika Jain

2015 drought effect: Sugar yield sees worst fall in 10 years, prices set to rise -Bhavika Jain

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published Published on Apr 3, 2017   modified Modified on Apr 3, 2017
-The Times of india

MUMBAI: Even as the agriculture sector shows signs of recovery from the severe 2015 drought, the sugar industry is yet to get over it.

The crushing season for 2016-17 has officially come to an end and it has recorded the lowest sugarcane crushing and production of sugar in the last 10 years. A total of 371.4 lakh metric tonnes of sugarcane was crushed in 147 mills across the state producing 417 lakh quintal of sugar. These figures are even lower than in 2008, when another severe drought had hit Maharashtra.

Officials say the price of sugar is expected to rise owing to the shortfall in production. Maharashtra is one of the largest producers of sugar in the country.

"This has been an exceptionally difficult year with the losses mounting. This is bound to have a cascading effect next year," said a senior official from the state sugar mills association. Sugar retail prices are hovering around Rs 38-40 as against the normal prices of Rs 32-34.

The worse-hit at the moment are the sugarcane farmers, who have lost income to the tune of Rs 6,000 crore due to low production. The area under sugarcane cultivation shrank to 6.3 lakh hectares in 2015-16 due to the drought from 10.3 lakh hectares the year before. Thus the total sugarcane production in 2016 was 4.5 lakh metric tonnes against a total harvest of 7.3 lakh metric ton in 2015.

The dip in sugarcane production is due to the drought in 2015. Sugarcane is an 18-month crop and the cane sown in 2015 was harvested in the end of 2016.

With one tonne sugarcane said to be fetching a minimum of Rs 2,000 for the farmers, even by conservative estimates they have made losses worth Rs 6,000 crore, say industry experts.

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The Times of India, 3 April, 2017, http://timesofindia.indiatimes.com/india/2015-drought-effect-sugar-yield-sees-worst-fall-in-10-years-prices-set-to-rise/articleshow/57980882.cms


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