Latest news with #PrakashNaiknavare
Mint
30-07-2025
- Business
- Mint
Indias sugar output falls 18 pc to 25.82 mn tonnes till July of this season: NFCSFL
New Delhi, Jul 30 (PTI) India's sugar production declined 18.38 per cent to 25.82 million tonnes till July in the current season ending October, down from the year-ago period, as major producing states reported lower output, the National Federation of Cooperative Sugar Factories Ltd (NFCSFL) said on Wednesday. The cooperative body expects total output to reach 26.11 million tonnes for the full season, well below the 31.9 million tonnes produced in 2023-24. Special crushing operations in Karnataka and Tamil Nadu, which run from June to September, are underway and expected to add some more tonnes to the total. Seven mills are operating in Karnataka compared to one last year, while Tamil Nadu has nine mills running versus 11 in the prior year. According to NFCSFL, Uttar Pradesh, India's largest sugar producer, saw output fall to 9.27 million tonnes till July from 10.36 million tonnes a year earlier. Maharashtra, the second-largest producer, reported a steeper decline to 8.09 million tonnes from 11 million tonnes, while Karnataka dropped to 4.06 million tonnes from 5.16 million tonnes. The production decline was due to reduced sugarcane availability, adverse weather conditions, increased diversion to ethanol production, and pest and disease outbreaks. In a significant development, India achieved 20 per cent ethanol blending with petrol in 2025, five years ahead of its original 2030 target. The milestone underscores the country's push to enhance energy security and reduce carbon emissions while boosting rural incomes. "This shift indicates greater feedstock diversification but also raises important questions about the long-term sustainability of ethanol production from sugarcane, particularly in years of surplus inventory," the NFCSFL said. Maharashtra approved the establishment of multi-feed distilleries across the state on July 23, aligning with the National Bioenergy Policy and India's Ethanol Blending Programme, which now targets 30 per cent blending by 2030. Ex-mill sugar prices have hovered around ₹ 3,900 per quintal following export quota announcements but showed a downward trend since mid-May. Rising festive season demand is expected to stabilise prices, crucial for mills conducting off-season maintenance, the Federation said. Looking ahead, the NFCSFL projects 35 million tonnes of sugar production in 2025-26, citing favourable monsoons, increased cane cultivation in Maharashtra and Karnataka, and a timely hike in the Fair and Remunerative Price by the government. The federation urged policy interventions, including revised ethanol procurement prices, increased minimum selling prices for sugar, and permission for sugar exports to manage excess inventory as per capita consumption declines due to growing health awareness. "Such measures are essential to safeguard the viability of sugar mills, maintain rural employment, and ensure India continues its forward momentum on both the ethanol and cooperative development fronts," said Prakash Naiknavare, Managing Director of NFCSFL.
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Business Standard
30-07-2025
- Business
- Business Standard
India's sugar output falls 18% to 25.82 MT till July of this season: NFCSFL
India's sugar production declined 18.38 per cent to 25.82 million tonnes till July in the current season ending October, down from the year-ago period, as major producing states reported lower output, the National Federation of Cooperative Sugar Factories Ltd (NFCSFL) said on Wednesday. The cooperative body expects total output to reach 26.11 million tonnes for the full season, well below the 31.9 million tonnes produced in 2023-24. Special crushing operations in Karnataka and Tamil Nadu, which run from June to September, are underway and expected to add some more tonnes to the total. Seven mills are operating in Karnataka compared to one last year, while Tamil Nadu has nine mills running versus 11 in the prior year. According to NFCSFL, Uttar Pradesh, India's largest sugar producer, saw output fall to 9.27 million tonnes till July from 10.36 million tonnes a year earlier. Maharashtra, the second-largest producer, reported a steeper decline to 8.09 million tonnes from 11 million tonnes, while Karnataka dropped to 4.06 million tonnes from 5.16 million tonnes. The production decline was due to reduced sugarcane availability, adverse weather conditions, increased diversion to ethanol production, and pest and disease outbreaks. In a significant development, India achieved 20 per cent ethanol blending with petrol in 2025, five years ahead of its original 2030 target. The milestone underscores the country's push to enhance energy security and reduce carbon emissions while boosting rural incomes. "This shift indicates greater feedstock diversification but also raises important questions about the long-term sustainability of ethanol production from sugarcane, particularly in years of surplus inventory," the NFCSFL said. Maharashtra approved the establishment of multi-feed distilleries across the state on July 23, aligning with the National Bioenergy Policy and India's Ethanol Blending Programme, which now targets 30 per cent blending by 2030. Ex-mill sugar prices have hovered around Rs 3,900 per quintal following export quota announcements but showed a downward trend since mid-May. Rising festive season demand is expected to stabilise prices, crucial for mills conducting off-season maintenance, the Federation said. Looking ahead, the NFCSFL projects 35 million tonnes of sugar production in 2025-26, citing favourable monsoons, increased cane cultivation in Maharashtra and Karnataka, and a timely hike in the Fair and Remunerative Price by the government. The federation urged policy interventions, including revised ethanol procurement prices, increased minimum selling prices for sugar, and permission for sugar exports to manage excess inventory as per capita consumption declines due to growing health awareness. "Such measures are essential to safeguard the viability of sugar mills, maintain rural employment, and ensure India continues its forward momentum on both the ethanol and cooperative development fronts," said Prakash Naiknavare, Managing Director of NFCSFL. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Mint
20-07-2025
- Business
- Mint
India's sugar exports touch around 700,000 tonnes, hopes of 900,000 tonnes by Sep
India exported 650,000–700,000 tonnes of sugar between 20 January and mid-July, and the world's second-largest producer may ship out more if global white sugar prices increase from the current low levels of $484 per tonne, according to traders. The sweetener was exported to Somalia, Afghanistan, Sri Lanka, Djibouti, UAE, Libya and Tanzania after the Centre on 20 January allowed exports of one million tonnes. "In the International market (London), white sugar prices touched $555 per tonne on 25 February. However, currently it is hovering around $484 per tonne due to improved global supply. Domestic sugar prices are firm compared to the international market, at around $430-450 per tonne. For Indian sugar mills, it makes sense to export when the prices are around $502 per tonne," said a trade analyst with a sugar firm. The food ministry has allowed over 500 sugar mills a uniform export quota of just over 3% of their three-year average production, which they can export directly or via merchant exporters. 'While current London white sugar prices are low, additional volumes could still be exported if global market conditions turn favourable, offering exporters flexibility to utilize available allocations. We are expecting around 800,000 tonnes to be exported by September end,' said Deepak Ballani, director general, Indian Sugar and Bio-Energy Manufacturers' Association (ISMA). According to ISMA, as of mid-July 2025, 6.5-700,000 tonnes of sugar have been exported from India. According to Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd (NFCSF), 900,000 tonnes of sugar are likely to be exported from the country by 30 September. Millers feel that demand is likely to grow in the domestic market as the monsoon advances. Sugar production in 2024-25 is projected to be around 26 million tonnes. This includes 25.74 million tonnes produced up to mid-May, along with an estimated 400,000 to 500,000 tonnes anticipated from the special crushing season in Tamil Nadu and Karnataka, which typically runs from June/July to September 2025. The season commenced with an opening stock of 8 million tonnes. Considering the projected domestic consumption of 28 million tonnes and export estimates of up to 900,000 tonnes, the closing stock is likely to be around 5.2–5.3 million tonnes, according to ISMA. This reflects a comfortable buffer, ensuring that the country has sufficient sugar stock to meet its domestic sugar demand, according to Ballani of ISMA. The 2025–26 sugar season is shaping up to be promising, buoyed by several positive developments across key sugar-producing regions, according to the agriculture ministry. In Maharashtra and Karnataka, sugarcane planting has shown significant improvement, thanks to a favourable south-west monsoon. Overall, sugarcane area is up marginally on year at 5.51 million hectares as on 11 July. Supported by strong cane availability, the stage is set for a timely start to the crushing season in October 2025. In the northern belt, including Uttar Pradesh, varietal replacement initiatives are expected to yield tangible benefits. These efforts are expected to result in higher cane yields and improved sugar recovery rates, according to Naiknavare of NFCSF. According to Crisil ratings, India's gross sugar production is likely to rise about 15% in the sugar season 2026 to about 35 million tonnes, aided by above-average monsoon, boosting cane acreage and yields in key sugar-producing states such as Maharashtra and Karnataka. The growth is expected to ease tightness in domestic supply and has the potential to boost ethanol diversion and revive exports with appropriate policy support.
Mint
17-07-2025
- Business
- Mint
Coop sugar mills ditch molasses for grains to keep ethanol flowing year-round
About a dozen cooperative sugar mills operating molasses-based distilleries have applied to convert their ethanol plants to be run on more widely available grains. Molasses is produced during the process of making sugar from sugarcane. But the sugarcane crushing period is limited to 4-5 months in a year, which means sugar mills dependent on molasses can only operate for a limited period. Switching to grains like maize and damaged food grains would ensure year-round ethanol production and improved efficiency for cooperative sugar mills, whose output has been reduced to about a third of India's overall sugar production. Out of India's 269 cooperative sugar mills, 93 operate molasses-based distilleries. 'Out of these 93 distilleries… 10 of them applied for conversion of existing sugarcane-based (molasses) feedstock ethanol plants to multi-feedstock-based plants,' said Prakash Naiknavare, managing director, National Federation of Cooperative Sugar Factories Ltd. Of these 10, eight are in Maharashtra, which is among India's largest sugarcane growing states, and one each in Gujarat and Karnataka. The federation is working on modalities so more cooperative sugar mills convert their distilleries from molasses to multi-feedstock. 'We have applied to convert our existing molasses distillery into multi-feedstock to increase our efficiency,' said R.B. Khandagave, managing director, Karnataka-based Chidanand Basaprabhu Kore Sahakari Sakkare Karkhane. 'Currently, our distillery is operational for around 200 days, but once the multi-feedstock is in place it would be operational throughout the year.' Currently, private and cooperative sugar mills in India produce about 3.5 billion litres of ethanol annually. Of this, cooperative sugar mills account for about 1 billion litres. In terms of sugar production, cooperative sugar mills account for about 35% of the national output, which is estimated at 26.1 million tonnes in 2024-25. According to a senior official in the government's co-operation department, the conversion to multi-feedstock plants will increase the financial viability and ensure better cash flows for cooperative sugar mills. In March, the Union government notified a scheme offering interest subvention, or a lower borrowing rate, for cooperative sugar mills converting ethanol distilleries to multi-feedstock units. Under the modified Ethanol Interest Subvention Scheme, the government offers an interest subvention of 6% per annum or 50% of the rate of interest charged by financial institutions, whichever is lower. The interest subvention is provided for a period of five years by the government, including a one-year moratorium on loan repayment. Cooperative sugar mills availing the benefit of interest subvention will also be given Priority-1 status by oil market companies. This aligns with the government's Ethanol Blended Petrol Programme, which mandates 20% ethanol blending with petrol. On 26 February, during the Advantage Assam 2.0 business summit in Guwahati, petroleum minister Hardeep S. Puri said 19.6% ethanol blending has been achieved so far. 'The conversion to multi-feedstock based plants would not only make the existing ethanol plants of the mills capable of operating when sugar-based feedstocks are not available for ethanol production, but will also improve efficiency and productivity of these plants,' said an official associated with cooperative sugar mills.
Gulf Today
14-06-2025
- Business
- Gulf Today
India faces two years of sugar surplus, growers and officials say
India is set to produce surplus sugar for at least two consecutive years, as millions of farmers expand the area under sugarcane cultivation amid ample rainfall, boosting crop yields, growers and industry officials said. The rebound in production would allow the world's second-largest sugar producer to increase exports in 2025/26, they said, after poor rainfall cut sugarcane yields and led to two years of export restrictions. 'Sugarcane usually gives us good returns, but sometimes we can't plant it due to a lack of water,' said Umesh Jagtap as he planted the crop on a three-acre plot in Maharashtra, a leading sugar producing state in the west. 'This year, we had heavy rain in May, and the forecast says more rain is on the way. So we're planning to plant more than usual.' Farmers from Maharashtra and neighbouring Karnataka struggle to irrigate their sugarcane crop in May. This year, however, Maharashtra and Karnataka received 1,007 per cent and 234 per cent more rainfall than average, respectively. The rainfall will benefit the crop to be harvested in the 2025/26 season, starting October, and will also support planting for the 2026/27 harvest, said Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories (NFCSF). Sugarcane typically takes 10 to 18 months from planting to harvest. As a result, farmers who began planting this month are expected to harvest their crop during the 2026/27 season. The NFCSF estimates gross sugar production in 2025/26 to rise by nearly a fifth from a year earlier, reaching 35 million metric tonnes. For the 2024/25 marketing year to September, India's net sugar production is expected to fall below consumption for the first time in eight years. This decline stems from a 2023 drought that hit sugarcane planting and forced India to prohibit sugar exports in 2023/24 and allowing merely 1 million tonnes in 2024/25. India was the world's No. 2 sugar exporter during the five years to 2022/23, with volumes averaging 6.8 million tonnes annually. 'Looks like production is set to bounce back strongly, so New Delhi will probably have no trouble allowing exports of over 3 million tonnes in the next season starting October,' said a Mumbai-based trader with a global trade house. Meanwhile Cristal Union, France's second-largest sugar and ethanol maker, on Tuesday posted a 62 per cent fall in net profit in 2024/25 to 117 million euros ($134 million), weighed down by a fall in sugar prices, and warned of weak results in the current fiscal year. Sales for the year ended January 31 declined to 2.65 billion euros from 2.8 billion the previous year, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell by a third to 287 million euros, the cooperative said. Other European sugar and ethanol groups, including France's largest producer Tereos and Germany's Suedzucker, have also posted steep profit declines, pressured by weak European sugar prices amid high local supply and strong Ukrainian imports. Higher volumes partly offset the decline in European sugar prices and limited the fall in revenue, the group said. However, a further slide in sugar prices since the start of the year and high costs were likely to weigh on this year's results, it said. 'The Group expects sharply lower results for 2025/26, as a result of much more unfavourable market conditions and sharply rising agricultural and industrial production costs,' the group said in a statement. Meanwhile Argentina's government has increased the prices of sugar- and corn-based bioethanol for mandatory blending with fuels for local use, according to a resolution published in the Official Gazette on Friday. The Energy Secretariat, under the Ministry of Economy, set the price of sugarcane-based bioethanol at 792.122 pesos (about $0.67) per liter, up from the previous price of 788.181 pesos per liter. Meanwhile, the price of corn-based bioethanol rose to 726 pesos per liter (about $0.61), up from 722.395 pesos before the resolution was announced. The changes take effect from the date of publication in the Official Gazette and will remain in effect until a new price is published to replace them. Reuters
