• Maharashtra reservoirs levels are at their highest since 2013.
  • This puts an end to dry spell worries, which started back in March.
  • Excessive rains have raised concern for cane damage, as the Monsoon season draws to a close.

Rainfall Performance in Key Districts

Monsoon Rainfall in Key Sugarcane States

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  • Rainfall in all key cane sugar areas is within normal range, with the exceptions of Maharashtra and Uttar Pradesh.
  • In Maharashtra, rainfall is 30% above average.
  • This heavy rainfall has led to flooding in Maharashtra, with possible implications for sugar cane development.
  • Below average rain in Uttar Pradesh is not a problem as there is enough water available from the River Ganges basin.

Maharashtra (Key Sugarcane Regions) – Monsoon Rainfall

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  • While the rainfall in Maharashtra has been heavy, it is unevenly distributed.
  • The heaviest rainfall has caused floods in the west and south of the state.
  • We think the impact seen in the flooded areas will be minimal, as they do not overlap with Maharashtra’s key sugarcane area.
  • Solapur is still in water deficit, but this is not of concern as heavy rainfall elsewhere has replenished the reservoirs used for irrigation.

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Maharashtra & Karnataka Reservoir Levels

  • We expect a 40% decline in Maharashtra’s production due to the key reservoirs, which have been dry since March.
  • The last time this happened was in 2016, where we saw just 4.2m tonnes of sugar being produced in Maharashtra, compared to the previous year’s 8.9m tonnes.
  • Maharashtra cane acreage has reduced by 24% compared to last season: 840k hectares down from 1,100k hectares.
  • On top of this, as a result of the dry spell, some sugarcane has been harvested early as cattle fodder.
  • However, with reservoir levels now full, this reduces concern of a further reduction in Maharashtrian production.

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Czarnikow 2019/20 India Estimates

  • We forecast that Indian sugar production will fall from 33m tonnes last year to 29m tonnes in the season about to begin.

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Keywords: India, Production, 19/20, Monsoon