Sugar production increases, likely to improve financial health of co-op mills

Registering an increase of about six lakh quintals, the cooperative sugar mills of the state have produced about 35 lakh quintals of sugar by crushing 353 lakh quintals of sugarcane during this crushing season.

The increase in production is likely to improve the dwindling financial condition of the 10 cooperative mills of the state, which are facing a loss of about ₹2,500 crore.

Moreover, sugar prices have remained above ₹40 per kg for the past six months, when the crushing operations began in November last year. As per officials in Haryana State Federation of Cooperative Sugar Mills (Sugarfed), the year 2016-17 has been the best year for cooperative sugar mills in the state as this is for the first time when the cooperative mills will earn profit, thanks to stable prices of sugarcane and increase in production. “Mills start making profit if the prices of sugar remain above ₹32 per kg, but this year, the prices have touched ₹40 and may even increase further,” said a senior official associated with a cooperative sugar mill.

It is pertinent to mention that this year, the BJP government announced its first hike of ₹10 in the State Advisory Prices of Sugarcane, fixing it to ₹320, ₹315 and ₹310 per quintal for early, mid and lateral varieties.

The Cooperative Sugar Mill, Shahabad, has produced a maximum of over 6.94 lakh quintals of sugar, followed by 4.30 lakh quintals of Cooperative Sugar Mill, Rohtak, 3.61 by Cooperative Sugar Mill, Meham, 3.72 lakh quintals by Cooperative Sugar Mill, Kaithal, 3.27 lakh quintals Cooperative Sugar Mill, Gohana, 2.96 lakh quintals by Cooperative Sugar Mill, Karnal, 2.73 lakh quintals by Cooperative Sugar Mill, Panipat, 2.37 lakh quintals by Cooperative Sugar Mill, Palwal, 2.50 lakh quintals by Cooperative Sugar Mill, Jind, and 2.21 lakh quintals by Cooperative Sugar Mill, Sonepat.

Meanwhile,HAFED Sugar Mill in Assandh of Karnal has produced over 3.48 lakh quintals of sugar during this year.

However, the cooperative sugar mills failed to improve the sugar recovery as the average rate of sugar recovery by the cooperative sugar mills has remained around 9.95 per cent for the past several years.

35 LAKH QUINTALS OF SUGAR PRODUCED BY CRUSHING 353 LAKH QUINTALS SUGARCANE