Sugar output could dip 10% in 2013-14 to 22 mt: K V Thomas

Food Minister K V Thomas cites lower cane production in drought-affected areas

Union Food Minister K V Thomas said today sugar output in the country was projected to drop 10 per cent to 22 million tonnes (mt) in the 2013-14 marketing year starting October, mainly due to lower output in drought-affected states.

Output is likely to be affected, especially in Maharashtra and Karnataka, he added.

Production in the next year would be just enough to meet the annual demand of 22 mt. But there would not be any problem of sugar supply as the country would have good quantity of carryover stock, he said.   

Sugar production of India, the world's second largest producer and biggest consumer, in the ongoing 2012-13 marketing year (October-September) is pegged at 24.5 mt and could even reach 25 mt.

The latest estimate on sugar output is almost in line with those of US Department of Agriculture (USDA), which recently projected an eight per cent fall in India's sugar production at 23.2 million tonnes for 2013-14 marketing year.   

According to the USDA, sugar production could decline by 26 per cent in Maharashtra to 5.87 million tonnes and 14 per cent in Karanataka at 2.69 million tonnes in 2013-14.

On increasing import duty on sugar from the current 10 per cent, Thomas said there has been such a demand from the sugar industry but no decision has yet been taken.