ISMA pegs Maha, UP sugar output at 16 mn tonnes

The apex industry body of sugar sector, Indian Sugar Mills Association (ISMA) has estimated sugar production of Maharashtra and Uttar Pradesh together at 16 million tonnes in 2011-12 marketing year starting next month.

This is about 1.2 million tonnes higher than the government's projection. Maharashtra and Uttar Pradesh are the country's top two sugar producing states. Sugar marketing year runs from October to September. Indian Sugar Mills Association (ISMA), which compiled production estimate for next season on September 22, has pegged the sugar output of Maharashtra at a record 9.3 million tonnes in the next marketing year.

However, Maharashtra's sugar output is estimated at only 8.57 million tonnes by the food ministry, whose data is based on the meeting of the cane commissioners of 10 major producing states held on September 20.

Similarly, in case of Uttar Pradesh, ISMA has projected production at 6.7 million tonnes in 2011-12 marketing year, against 6.23 million tonnes estimated by food ministry. Maharashtra produced 9.05 million tonnes, while UP produces 5.88 million tonnes in the current marketing year ending this month, according to ISMA data.

For the entire country, ISMA maintained its earlier forecast of 26 million tonnes for the 2011-12 marketing year, which is 1.4 million tonnes higher than food ministry's estimate of 24.6 million tonnes. Last week, Agriculture Minister Sharad Pawar had said that there seems to be some mistake in food ministry's calculation and expressed confidence that production in next marketing year would be between 25.5-26 million tonnes.

"My impression is that there is some mistake in the calculation. I will collect the proper figure by Monday and then give it to the Food Minister," Pawar had said when asked about his views on the latest sugar production data released by the Food Ministry. Pawar's comment came a day after Food Minister K V Thomas announced that sugar output is estimated to rise marginally at 24.6 million tonnes in the 2011-12 marketing year, against 24.3 million tonnes this year.

Industry officials fear that the lower production estimate by food ministry could have an impact on government's decision on the quantity and timing for exports of the sweetener in the next season. In the current 2010-11 marketing year, the government has allowed exports of 2.6 million tonnes of sugar.