Sugar production fell by 19 percent to 16.24 million tonnes during the first five months of the 2016-17 marketing year ending September on lower cane supply in drought-hit states like Maharashtra and Karnataka.
Sugar output of India, the world's second largest producer after Brazil, stood at 19.94 million tonnes during October-February period of the previous marketing year. A sugar marketing year runs from October to September.
"As on February 28, 2017, 257 sugar mills are continuing their crushing operations, whereas in 2015-16 sugar season, 390 mills were in operation on the same date," Indian Sugar Mills Association said in a statement.
In Uttar Pradesh mills have produced 6.24 million tonnes of sugar during October-February period, up 17 percent from 5.35 million tonnes in the corresponding period of the previous marketing year.
Sugar production in Maharashtra dropped to 4.11 million tonnes in October-February from 7.05 million tonnes in the year-ago period. Mills in Karnataka produced 2.05 million tonnes of sugar in the period against 3.61 million tonnes in the same period last year.
ISMA attributed the fall in production to drought in southern and western parts of India during the last two years, impacting sugarcane output and productivity in these regions.
"This has been the major contributor towards substantially lower sugar production in Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana. Gujarat also seems to have been affected, though to a lower extent, as compared to the other states in this region," the association said.
The lower cane availability has resulted in early closure of sugar mills and lower sugar production.
ISMA in January had revised sugar production estimates downward to 21.3 million tonnes for the 2016-17 marketing year (October-September) from its earlier projection of 23.4 million tonnes. The country's sugar output stood at 25.1 million tonnes in the 2015-16 marketing year.
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