Pune: The West Indian Sugar Mills Association (WISMA) has projected a significant reduction in the state's sugarcane area by 200000 hectares this year, attributing it to last season's inadequate rainfall and drought conditions.

In a joint meeting held last week in Pune, guided by Indian Sugar Mills Association (ISMA) President Prabhakar Rao and WISMA President B. B. Thombre, several key industry figures were present, including Sugar Commissioner Dr. Kunal Khemnar, Sugar Union Managing Director Sanjay Khatale, and WISMA Executive Director Ajit Chougule.

Maharashtra topped the nation with 1.10 crore tons of sugar production in the 2023-24 season and supplied 580 crore liters of ethanol by June 30.

The meeting estimates that the state's sugarcane planting area will likely remain at 12 lakh hectares this year, down from 14 lakh hectares last year.

Marathwada is expected to see a 25 per cent reduction in sugarcane area, while western Maharashtra, excluding Solapur district, is projected to experience a 5 per cent decrease. Consequently, the state's sugar production this year is estimated to be around 10 million tons.

Sugar factories are grappling with losses in sugar sales, prompting a demand for the minimum selling price of sugar to be raised from ₹31 per kilogram to ₹41.66 per kilogram.

The halt in ethanol production has made loan repayment difficult for factories, leading to calls for an increase in ethanol prices, permission for 20 lakh tons of sugar exports, and restructuring of all types of loans received by sugar factories.

The repayment process should extend over ten years, with a two-year moratorium on loan recovery. These demands will be pursued with the central government.

WISMA and ISMA have urged the central government to announce this year's ethanol supply policy by August 15, due to the adverse impact on ethanol supply caused by last season's decisions and the challenges faced by distillery projects.