Food ministry vetting sugar output estimates

Days after Agriculture Minister Sharad Pawar contested the sugar output estimates given by the food ministry, its boss K V Thomas said efforts are being taken to “reconcile” the figures.

Speaking at the annual general meeting of the National Federation of Cooperative Sugar Factories, the food minister said he was aware of “some difference” on preliminary estimates of sugar production. “Efforts are on to reconcile the figures,” he added.

The food ministry had last week pegged the output for the new sugar season beginning October at 24.6 million tonnes — lower than the industry’s projection of around 26 million tonnes. In the current year, 24.3 million tonnes sugar were produced.

A day later, Pawar said production should be somewhere around 25.5-26 million tonnes. “My impression is that there is some mistake in the calculation,” he claimed. This year, monsoon and the reservoir position have been good. So, the withdrawal (recovery rate) of sugar from cane will be higher than the current season, he added.

On Tuesday, Thomas, responding to the federation’s demand for sugar export in the new season, said the government would take steps to maintain price stability. “We will ensure that sugar factories make fair realisation and pay remunerative price to farmers”.

The meeting also decided to extend the stock holding limit on traders (currently 500 tonnes) by two months — till November — in view of the festival and marriage season. “I hope that sugar prices will remain at reasonable level during these months. There may not be any need to extend the limits beyond November,” he added.