Sugar output pegged at 24.8 million tonnes in 2012-13: Thomas

India produced 25.8 MT of the sweetener in the 2011-12 sugar marketing season

Sugar production in India is expected to decline by 10.8% to 24.8 million tonnes (MT) in the current sugar marketing season, which will end next month, Parliament was informed today.

India had produced 25.8 million tonne of the sweetener in the 2011-12 sugar marketing season (October-September), Food Minister K V Thomas said in a written reply to Lok Sabha.

"The total sugar production in the country is provisionally estimated at about 24.8 million tonne, which is sufficient to meet the provisionally estimated domestic demand of about 23 million tonne during the current season," Thomas added.

According to reports from the sugar mills, the output of the sweetener in the 2012-13 sugar season has been lower in Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh compared to the previous year, he informed the house.

Earlier this month, Agriculture Minister Sharad Pawar had said sugar production in the marketing year 2013-14 may exceed 24.5 million tonnes level achieved this year on hopes of higher yields due to good rains.

Thomas, however said that sugar stocks in India, world's second biggest producer and largest consumer of the sweetener, are adequate to meet domestic consumption.

"With the sufficient carryover stocks and likely sugar production during 2013-14 sugar season, there would be adequate stocks of sugar to meet the domestic requirement, he added.

In a separate query on sugar subsidy and prices, the Food Minister said the decontrolling of the sector, with partial removal of levy obligation and doing away with the regulated release mechanism, will improve the health of the sugar firms and promote sustainable development leading to better prices and availability of the sweetener.

Besides, to make sugar available in the Public Distribution System (PDS), government has asked the states to procure it from the open market through a transparent system, he added.

"The central government would provide fixed subsidy of Rs 18.50 per kg, limited to the quantity based on their existing allocations," the Minister said.

In another query on sugar exports, Thomas said exports are free subject to prior registration of quantity with Directorate General of Foreign Trade (DGFT).

On the question, whether an uncertainty has been created in the sugar market including exports due to lack of a clear policy regarding shipments, the minister said Centre has not received any complaint regarding the extant of sugar export policy in the recent past.

"However, as regards functioning of the sugar exporters, the government has received some complaints about handling of export of European Union under preferential quota, which is under examination," Thomas added.