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Uttar Pradesh has reported a drop in cane crushing in 2023-24, indicating a more diversion of sugarcane to local jaggery units.
As per the data from the Sugarcane department, cane crushing fell to 981.68 lakh tonnes in the recently concluded crushing season. This is the lowest cane crushing recorded in the past seven years, despite the state government hiking the state advisory price (SAP) by Rs 20 per quintal earlier this year and operating a maximum of 121 mills.
The cane supplied to sugar mills decreased despite the increase in area under cane cultivation during the last season 2023-24. According to the figures from the Sugarcane department, the total sugarcane cultivation area in Uttar Pradesh for the 2023-24 season was 29.66 lakh hectares, 9.12 lakh hectares more than the sugarcane cultivation area as compared to previous years.
In 2017-18, 1,111.9 lakh tonnes of cane were crushed, despite ever-increasing cane production. In 2023-24, cane production in the state reached an all-time high of 2,494.20 lakh tonnes, a 4 per cent increase from 2022-23, when 2,394.62 lakh tonnes of cane was produced.
Cane productivity also rose from 79.19 tonnes per hectare in 2017-18 to 84.1 tonnes per hectare in 2023-24. Additionally, cane acreage increased from 22.99 lakh hectares in 2017-18 to 29.66 lakh hectares in 2023-24.
Officials are closely monitoring the situation amid state government plans to open new mills and increase the cane-crushing capacities of existing ones.
Data further shows that sugar production in the state declined last season. It fell slightly from 104.82 lakh tonnes in 2022-23 to 104.13 lakh tonnes in 2023-24.
Industry experts from UP believe that more sugarcane has been diverted to jaggery units.
Along with cane crushing and sugar production, the production of ethanol also fell marginally as the Union government banned the diversion of sugar and cane juice for the production of ethanol.
The Union government on December 7 had directed all sugar mills and distilleries not to use sugarcane juice for ethanol production. The government, in a notification, directed all sugar mills and distilleries not to use sugar cane juice/sugar syrup for ethanol in ESY (Ethanol Supply Year) 2023-24 with immediate effect.
Supply of ethanol for existing offers received by oil marketing companies from B-Heavy molasses will continue.
The ESY runs from December to October.
According to experts, the step has been taken to ensure there is an adequate supply of sugar in the local market.
UP is the country’s biggest ethanol producer. A sugar by-product, ethanol is used for a variety of purposes, ranging from mixing in fossil fuel to its usage in pharmaceutical and chemical industries.  The state has about 85 operational ethanol distilleries, and their annual capacity is estimated at 2.45 billion litres.
During the last season, the distilleries in UP had supplied over two billion litres of ethanol. Ethanol produced in the state is exported to oil marketing company depots, both within and outside the state, for the Centre has mandated 10 per cent blending in fuel.
The current ethanol production capacity in India is 1,364 crore litres and it is sufficient to meet the fuel blending targets. The roadmap for ethanol blending in India 2020-25, is estimated to be 1,016 crore litres to achieve 20 per cent blending targets in ESY 2025-26. In line with the roadmap, oil marketing companies have achieved 10 per cent ethanol blending during 2021-22 and 12 per cent during 2022-23.