Sugar to taste bitter this festival season

Is sugar going to taste bitter in the coming days? Going by the findings of a study conducted by the Associated Chamber of Commerce (Assocham), the answer is yes. According to the study, in 2012-13 sugarcane production is likely to fall across the country, as major sugarcane growing states, including Karnataka and Maharashtra, have received less rains so far this year.

The study forecasts production at the national level to be lower at around 25 million tonnes. Karnataka is estimated to produce 3.8 million tonnes of sugar this year. Production in Uttar Pradesh, the country’s second-largest sugar producing state, too is expected to be lower at around 6.8 million tonnes. Production is likely to fall in Maharashtra, Punjab, Haryana and Tamil Nadu, too.

According to Karnataka State Farmers Association (KSFA) leader Kodihalli Chandrashekar, the price of sugar is going to be higher, as production is likely to fall by 30 percent. “Price of sugar is likely to hover around `45-50 per kg compared with `34 now. It is difficult for the government to control pricing by importing as prices are already high in other sugar producing countries,” he said. For instance, sugarcane crop is likely to be affected in Brazil and Australia against the backdrop of heavy rains in those countries.
In India, 3.33 crore tonnes of sugarcane was produced last year, whereas this year, production is likely to fall by 1 crore tonnes. In Karnataka, the average production of sugarcane per acre was 35 tonnes. This year this is expected to go down to 25 tonnes.

The production in Belgaum district— where 1.20 crore tonnes of sugarcane was grown last year—is expected to fall by 50 percent. Production is likely to decline in districts such as Bagalkot and Mandya where sugarcane is grown on a large scale.

According to the Assocham study, consumers will be forced to shell out more for sugar in the upcoming festive season, as shortage of rainfall in sugarcane growing areas coupled with high demand is likely to push up prices further.