Crushing season 2020-21: Sugar production likely to surpass initial official estimates

LAHORE: Sugar production during the crushing season 2020-21 is expected to surpass the initial official estimates and will remain over 5.7 million metric tons as compared to the initial official estimates of 5.5 million metric tons.

There is also a carryover stock of over 50,000 metric tons thus the total production will reach near national annual consumption, said Cane Commissioner Punjab Muhammad Zaman Wattoo while talking to Business Recorder.

He said that till date total national crushing stands at 5.5 million metric tons (equal to initial total production estimates) while it is expected that it will reach over 5.7 million metric tons by March 15, 2021.

He said that till date province-wise production stands in Punjab at over 3.67 metric tons, 1.508 metric tons in Sindh and 315,000 metric tons in KPK. Sources claimed that there was also some 700,000-800,000 metric tons of sugar produced off-the-book by the mills which, due to certain steps taken by the Punjab government this year, may confine to 300,000-400,000 metric tons.

They said that it also adds to the estimated consumption of the mills.

The sources said that the government may import 100,000-200,000 metric tons of sugar so as to avoid any hike in the prices of sugar.

Meanwhile, sugar prices on Wednesday registered Rs 50 reduction in 100 kilograms of bag both in the Akbari Mandi and ex-Mills prices.

Chairman Lahore Sugar Dealers Association (LSDA) Asghar Butt while talking to this scribe said that prices fell from Rs 9500 per 100 kilogram to Rs 9450 per 100 kilograms bag while in ex-mill these dropped to Rs 9250-9300 per 100 kilograms bag. He termed the downfall in the sugar prices as a result of less demand in the market.

Copyright Business Recorder, 2021