Sugar output may rise 28% to 24 mn tonnes in 2010-11

Sugar production may increase by over five million tonnes to touch 24 million tonnes in 2010-11 sugar year starting next month owing to higher cane output, Food and Agriculture Minister Sharad Pawar today said.

The country is estimated to produce 18.8 million tonnes in 2009-10 sugar year ending this month. Sugar year runs from October to September.

"Sugarcane area is much more than last year and production of sugar will be more than 23 million tonnes. I will not be surprised if it touches 24 million tonnes," Pawar told reporters here.

He noted that excess rains in northern India would affect the crop, rather it would boost yield.

According to the first advance estimate released by the government today, sugarcane production is expected to rise 17 per cent to 324.9 million tonnes in 2010-11 crop year.

Higher output in the next season would enable the sugar mills to meet their export obligation of nearly one million tonnes. Besides, it is likely to put downward pressure on the prices, which has crashed by 40 per cent since mid-January when it reached a record Rs 48 per kg in the national capital.

Sugar production in India, the world's second largest producer and biggest consumer, is likely to outstrip annual demand of 23 million tonnes after a gap of two sugar year.

In 2008-09 sugar year, production declined to 14.7 million tonnes from 26.3 million tonnes in the previous year. The output has rebounded in the current year to 18.8 million tonnes.

Lower production forced the government to allow duty-free sugar import to boost domestic availability. The country has imported about five million tonnes of sugar since February 2009. The duty-free import is valid till December 2010 and the industry is demanding imposition of duty to check the sliding prices.