ISMA revises sugar output by 5 per cent

Indian Sugar Mills Association (ISMA), the apex body of the private sector mills in India, has revised sugar output estimate for the current season (October-September) by 5 per cent to 14.7 million tonnes (MT), the association said in a release on Wednesday. The country’s output as on April 15 has already surpassed 13.9 MT. 35 mills were operational on the said date.

The association, however said that contracts to import 1.3 MT of raw sugar had been made. Government has also permitted government trading agencies like MMTC and others to import refined sugar to control prices. The fall has been seen only in futures whereas spot prices have not shown similar trend as imported refined sugar has not reached the market as yet.

“Taking into account the present situation, total sugar production for the season may exceed 14.7 MT. With the opening stock of 8 MT, total availability would work out to 22.7 MT,” ISMA President Samir Somaiya said. The country’s annual consumption is estimated to be 21-22 MT.

However, this output would be a decline of over 44 per cent from last year’s production. The dip can be attributed to lower acreage under sugarcane and over 10 per cent drop in the recovery.

Raw sugar imports to the tune of 1.3 MT have also been contracted. Of this, 900,000 tonnes have already arrived, the release said. The government has allowed duty free import of raw sugar to augment domestic availability. It also sanctioned duty-free import of 1 MT refined sugar by government agencies. Stock limits have been imposed on traders to discourage hoarding and higher quota has been allocated for open market sale.