Sugar output to rise by 4% in 2014-15: ISMA

It is estimated to rise to 25.3 million tonnes during the next marketing year starting October

India's sugar production is estimated to rise by 4 per cent to 25.3 million tonnes during the next marketing year starting October despite a drop in cane area by 2 per cent, industry body ISMA said today.

Sugar production is estimated at 24.3 million tonnes in the 2013-14 marketing year (October-September).

With opening stock of 7.5 million tonnes at the start of next marketing year and a projected rise in production, Indian Sugar Mills Association (ISMA) said the availability would be sufficient to meet annual demand of 24.5 million tonnes.

"Based on the acreages, estimated yields and sugar recovery, as well as drawal of sugarcane by the sugar industry and current rainfall progression and availability of water in the reservoirs, the preliminary estimates for sugar production in 2014-15 sugar season, works out to around 253 lakh tons of sugar," ISMA said in a statement.

Based on the satellite images of mid-June, ISMA said it is estimated that the total cane area in 2014-15 would be around 5.23 million hectares, which is about 2 per cent less than last year.

Sugarcane acreage in Maharashtra and Karnataka is higher, even though the area under coverage in Uttar Pradesh and Tamil Nadu is lower.

Still, ISMA feels that output would be more in the next marketing year as cane yields and sugar recoveries are higher in Maharashtra and Karnataka where cane acreage is higher.

"There are doubts on the rainfall in the western part of the country, which may have some impact on currently estimated yields and recoveries from Maharashtra and North Karnataka," ISMA said, adding that the impact of lower rainfall in June - July can be minimised since sugarcane crop is largely grown on irrigated area.

Sugarcane acreage in UP in 2014-15 would be around 9 per cent less than 2013-14 sugar season, which may lead to lower production than 6.5 million tonnes in 2013-14.

In Maharashtra, cane acreage is estimated to be about 13 per cent higher over last year. Hence, sugar production could be higher as compared to 7.7 million tonnes in 2013-14.