India's sugar production up by 24% so far

The country's sugar production has increased by 24% to 21.8 million tonnes till February 15 of the 2010-11 sugar season, industry body ISMA said.

Sugar output was 17.58 million tonnes in the same period last season. The sugar season runs from October to September.

"As on February 15, mills have produced 21.8 million tonnes of sugar, as against 17.58 million tonnes in the year-ago period," ISMA Director General Abinash Verma told PTI.

Sugarcane crushing in Maharashtra, the country's top sugar producing state, is still continuing, while it is drawing close in Uttar Pradesh, second biggest producing state.

ISMA, which represents the private mills, has pegged India's total sugar output at 25 million tonnes this year, as against nearly 19 million tonnes in the 2009-10 sugar season.

However, the government has estimated sugar production at 24.5 million tonnes, higher than the country's annual demand of 22 million tonnes.

As production is expected to outstrip the demand, the country has started exporting the sweetener. The government initially allowed mills to fulfil the export obligation of nearly one million tonnes under the Advance Licence Scheme.

Recently, export of 5,00,000 tonnes of sugar export under the open general licence (OGL) was also allowed.

Domestic Prices have also softened to Rs 30-32 per kg in the national capital from nearly Rs 50 per kg in mid-January 2010.