Sugar output down 4%, says Isma

Indian mills produced 23.15 million tonnes (mt) of sugar between October 1 and April 15, down four per cent from a year earlier, the Indian Sugar Mills Association (Isma) said.

Indian mills had produced 1.54 mt raw sugar by the end of March and of that 850,000 tonnes was exported, Isma said on Thursday.

In March alone, mills shipped 350,000 tonnes of raw sugar and they are likely to benefit from the incentives announced by the government for the dispatches, it said.

India announced an incentive of 3,300 rupees per tonne for production of raw sugar for exports as the world's second biggest producer of the sweetener tries to bring down its stockpile by promoting exports.

In April and May, sugar exports are likely to total 350,000 to 400,000 tonnes, the association said.

The world's biggest consumer of sugar is likely to produce 23.8 million tonnes in 2013/14, slightly lower than the 25.1 million tonnes produced a year ago.

Local sugar prices hit a 14-1/2 month high on April 4 thanks to the summer season when demand for ice creams and soft drinks picks up. The election campaign has also propped up prices.