• People had worried that the monsoon was late and low rainfall would affect this year’s crop negatively.
  • As it turns out, excessive rainfall in parts of Maharashtra has caused flooding.
  • This could negatively affect the crop if it is prolonged, but for now rainfall is positive.

 Rainfall Performance in Key Districts

  • Rainfall in all key cane sugar areas are within the normal range except for Maharashtra.
  • Rainfall in Maharashtra has increased sharply from 10% to 32% above normal levels over the last two weeks.

Monsoon Rainfall in Key Sugarcane States

  • Torrential rains in Pune has led to cumulative rainfall 140% above normal levels and has caused flooding in some areas.
  • Floods can negatively affect the sugar content in cane, however they would need to persist for longer before we look to revise down our sugar production.
  • While rains in Solapur has disappointed, rains in Pune (nearby) have meant that the reservoir near Solapur is full, reducing the importance of the low
    rainfall.

Maharashtra (Key Sugarcane Regions) – Monsoon Rainfall

MH & KN Reservoir Levels  

  • We expect Maharashtra’s production to be down by 40% y-o-y due to key reservoirs being dry since March.
  • If they had remained dry we would have looked to revise down further.
  • Fortunately, the Jakaywadi and Ujjani reservoirs have been completely filled within one week, negating that worry.

CZ 19/20 India Estimates

    

Key Cane Locations in Maharashtra