Due to adverse weather conditions and diseases, along with a decline in sugarcane production, the sugar recovery rate is also decreasing. This has raised concerns within the sugar industry. Farmers are certain to face losses, and consumers may also feel the impact.
Recovery refers to the rate at which sugar is extracted from sugarcane, depending on factors like crop quality, weather conditions, and when the sugar mills start operating. In India, a recovery rate above 10 percent is considered good. However, this year, no state has even come close to this figure. The national recovery rate stands at 8.81 percent, compared to 9.37 percent during the same period last year. This indicates that, so far, 0.56 percent less sugar is being extracted from sugarcane.
Sugarcane Recovery Rate Drops, Affects Farmers and Consumers
Sugarcane recovery rates have dropped significantly this year, directly impacting both farmers and the sugar industry. Recovery refers to the amount of sugar extracted from sugarcane, which has decreased this year due to adverse weather, diseases, and other challenges.
Here’s the sugarcane recovery rate in percentage for 2024-25 compared to 2023-24:
| State | 2024-25 | 2023-24 |
|---|---|---|
| Uttar Pradesh | 9.05 | 9.90 |
| Haryana | 8.30 | 9.20 |
| Madhya Pradesh | 8.50 | 9.50 |
| Punjab | 8.30 | 8.40 |
| Uttarakhand | 8.70 | 9.20 |
| Bihar | 9.20 | 9.20 |
| Maharashtra | 8.80 | 8.95 |
| Karnataka | 8.50 | 9.60 |
| Tamil Nadu | 8.30 | 8.90 |
Source: National Federation of Co-operative Sugar Factories Limited
Decline in Sugar Recovery
In simpler terms, last year, 9.37 kg of sugar was extracted per quintal of sugarcane sent to sugar mills. This year, only 8.81 kg is being extracted from the same amount of sugarcane. At the same time, sugarcane prices have increased compared to last year. In Uttar Pradesh, for instance, the price has risen by Rs 20 per quintal.
Other costs, including transportation, labour, and other expenses, have also increased. However, the amount of sugar extracted from sugarcane has decreased. This has caused a significant crisis for farmers. Sugar mill operators are reducing the prices they pay farmers for sugarcane, claiming it is of inferior quality.
Sugar Prices Update
Crisis for Farmers
Farmers are facing a tough situation because the improved variety of sugarcane, 0238, which typically has a recovery rate of up to 11 per cent, is rapidly falling prey to diseases. Unfortunately, there is no alternative crop to replace it.
Impact on Sugarcane-Producing States
According to Prakash Naiknavare, Managing Director of the National Federation of Co-operative Sugar Factories Limited, 12 states in India are major sugarcane producers. Among these, eight states are facing poor recovery rates. Only Uttar Pradesh, Gujarat, Bihar, and Telangana have recovery rates above 9 percent.
- Uttar Pradesh, the largest producer, has seen a decline of 0.85 per cent in recovery.
- Maharashtra’s recovery rate has dropped by 0.15 percent.
- Madhya Pradesh and Haryana have seen declines of about 1 per cent.
Beer lovers in Karnataka face a shortage due to a government price hike and new sugar content labeling rules which have led prices to rise and supply chains to be disrupted#Bengaluru #karnataka #Beer https://t.co/zQuyFO5iPQ
— News18 (@CNNnews18) January 29, 2025
Sugar MSP Remains Stable Despite Rising Costs
Sugar mill organizations report that production costs have increased by about Rs 150 per quintal, while the Minimum Selling Price (MSP) of sugar has remained unchanged for the past five years. If the advisory price for sugarcane is raised to compensate for farmers’ losses, sugar mills would face increased losses.
To balance this, sugar mills are asking for an increase in the MSP of sugar. However, this could reduce the loss for mills and farmers, but it would likely raise sugar prices for consumers.