Govt pegs sugar output for 2010-11 season at 24.5 mn tonnes

India's sugar output in 2010-11 season is estimated at 24.5 million tonnes against the annual domestic demand of 22.5-23 million tonnes, the government today informed Rajya Sabha.

"The production of sugar during current sugar season (October-September) 2010-11 is provisionally estimated at about 24.5 million tonnes against the provisionally estimated demand of about 22.5-23 million tonnes," Minister of State for Food and Agriculture K V Thomas said in a written reply to Rajya Sabha.

India, the world's second largest sugar producer, had produced 19 million tonnes in the 2009-10 season.

The government's initial estimate is 1 million tonnes lower than the industry's forecast of 25.5 million tonnes for the 2010-11 season.

The minister said there is no proposal to impose import duty on raw and refined sugar before December 31, 2010. Early last year, the Centre had permitted duty-free import of raw and refined sugar up to December 31 this year. India imported about 6 million tonnes of sugar to meet the domestic demand.

On decontrol of the sugar sector, Thomas said: "No decision has been taken by the central government to decontrol the present controls over the sugar sector."

The government fixes the Fair and Remunerative Price (FRP) of sugarcane every season. FRP is the minimum price that mills have to pay to cane farmers for buying their produce. Besides, it also fixes the sugar quota to be sold every month in the open market as well as through ration shops.