Sugar consumption falls in Oct-Dec period

Demand has fallen by 500,000 tonnes because of cash crunch after government's demonetisation move

Indian sugar mills association has revised downwards their estimates for sugar consumption in sugar season 16-17 (October to september) and next fortnight the apex sugar body will be reviewing estimates for production, said ISMA in a note. However, sources said ISMA's earlier estimate of 23.4 million tons of sugar production may have to be revised lower. Union Agriculture ministry has also put their estimate for sugar production at 22.5 million tons.

"The first 3 months of the current season i.e. October-December 2016, has seen a big fall in sugar offtake. With weddings and family celebrations being at low key, and consumption