Sugar output may dip 19%, says Icra

Icra said, domestic sugar consumption is expected to fall by 4% compared to SY16

Sugar production is likely to decline by 19 per cent to 20.3 million tonnes during sugar year (SY) 2017, due to poor rainfall during previous monsoon in key producing states like Maharashtra and Karnataka, Icra said in a report on Thursday.

During SY17, Icra said, domestic sugar consumption is expected to fall by 4 per cent to around 24.0 million tonnes compared to SY16.

"Despite a decline in the domestic production, we project the closing stocks at 4-4.5 million tonnes at the end of SY17 season, which will be sufficient to meet the requirement of around two months of consumption," said Icra