Govt projects nearly 3% drop in sugar output this yr

We project total sugar production at 24.4 MT this year, against 25.1 MT in 2012-13: Thomas

The country's sugar production is likely to drop by nearly three per cent to 24.4 million tonnes this year, but sufficient to meet the domestic demand, Food Minister K V Thomas said today.

The government's sugar output projections are, however, lower than the industry estimate of 25 million tonnes for the ongoing 2013-14 marketing year (October-September).

"As of now, we project total sugar production at 24.4 million tonnes this year, against 25.1 million tonnes in 2012-13," Thomas told reporters.

However, availability of sugar in India, the world's biggest consumer and second largest producer after Brazil, would be sufficient to meet the estimated domestic demand of 23.5 million tonnes this year, he said.

"We require 23.5 million tonnes of sugar this year. We already have an opening stock of 89 lakh tonnes. Internally, our position is comfortable," Thomas said.

The country's production of the sweetener is seen higher than the demand for the fourth marketing year in a row.

 Asked if sugar output would be affected due to shut down of crushing operations by some mills in Uttar Pradesh over cane price issue, Food Secretary Sudhir Kumar said: "If the logjam continues and crushing delays, obviously, there will be some impact."

Meanwhile, Indian Sugar Mills Association (ISMA) has estimated total sugar production at 25 million tonnes this year, slightly lower than 25.1 million tonnes last year.

It had said a possible fall in output is expected in Uttar Pradesh, the country's second biggest sugar producing state, and Tamil Nadu.