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12-02-2024 11:36 AM | Source: Kedia Advisory
Sugar Woes in Uttar Pradesh: Yield Challenges and Regional Dynamics Unveiled by ISMA by Amit Gupta, Kedia Advisory

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ISMA reveals a 5-10% decline in sugarcane yield in western Uttar Pradesh due to waterlogging and red rot infestation, contrasting with stable or improved yields in other regions. Despite challenges, sugarcane area expands by 1%, with better sugar recovery projected, hinting at a slight increase in overall production. The dominance of CO-0238 variety faces setbacks from climatic conditions and spread of red rot, while pricing remains favorable for farmers under State Advised Price (SAP) regulations.

Highlights

Sugarcane Yield Decline: Indian Sugar & Bio-energy Manufacturers Association (ISMA) reports a 5-10% decrease in sugarcane yield in western Uttar Pradesh, a significant contributor to the state's sugar production.

Causes of Yield Reduction: Lower yield attributed to waterlogging and red rot infestation, particularly affecting certain districts with a 10-13% decline.

Regional Disparities: While central UP maintains similar or slightly lower yields compared to last year, eastern UP experiences improved yields.

Sugarcane Area Increase: Despite yield challenges, sugarcane area in UP has expanded by approximately 1%, as per satellite mapping data.

Sugar Recovery: ISMA reports better sugar recovery rates across all three regions of UP, which is expected to boost sugar output from the state.

Production Estimates: Second advance estimates suggest a projected sugar production of 120 lakh tonnes for the 2023-24 season, a slight increase from the previous year.

Dominant Variety: CO-0238 variety covers a significant portion of sugarcane area in UP, but its productivity is affected by adverse climatic conditions and red rot disease.

Red Rot Infestation: Spread of red rot attributed to climatic conditions and use of mixed seeds from unreliable sources, impacting the productivity of CO-0238 variety.

Sugarcane Pricing: Mills in UP adhere to State Advised Price (SAP) for cane payment, which was recently increased to Rs 370/quintal for the 2023-24 season, providing higher remuneration compared to the Fair and Remunerative Price (FRP).

Conclusion

The insights from ISMA shed light on the complexities impacting Uttar Pradesh's sugar industry, emphasizing the need for targeted solutions to mitigate yield challenges and disease spread. While western UP grapples with yield declines, the resilience of central and eastern regions offers a ray of hope for overall production. Efforts to address issues such as red rot infestation and ensuring fair pricing mechanisms are imperative for sustaining the vitality of the sugarcane sector in the state.

 

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