India's sugar output to surpass 27 mn tonnes this season: ISMA

With 290 of the 530 sugar mills currently being operational this number is achievable

India's sugar production surpassed all previous estimates to record at 26.36 million tonnes of the sweetener output by April 15, a rise of 3.21 million tonnes from the same period last year. By April 15, 2014, sugar production was recorded at 23.15 million tonnes.

With 290 of the 530 sugar mills currently being operational, sugar output in India may touch 27 million tonnes this year, a statement from the apex industry body Indian Sugar Mills Association (ISMA) said.

This indicates that during the current season, there would be a surplus of over 2.2 million tonnes produced over the estimated domestic consumption of 24.8 million tonnes. Therefore, the closing balance of September 30, 2015 with the sugar industry will be over 9 million tonnes. This is after considering some quantity of exports.

The domestic ex-mill sugar prices have fallen by Rs 8-9 a kg in the last six months i.e. from the beginning of this sugar season. The sugar prices are at the lowest in the last seven years. These prices are below the cost of production by Rs 7,000 to Rs 9,000 a tonne.

With cane price arrears remaining pending at Rs 19,300 crore i.e. at about 30-35 per cent of the total price payable by the factories in the current season, the situation is alarming, said the statement.

Total sugar output in India was recorded at 24.4 million tonnes in 2013-14 crushing season.