Sugar Production May Crash To 165-175 Lakh Tonne

Sugarcane is the only major commercial crop likely to register a fall in output this year. This is chiefly due to an erratic monsoon in Maharashtra, the largest cane producing state in the country. As a result, sugar production is expected to decline from its highest level of 184.5 lakh tonne in 2000-01 to 165-175 lakh tonne in the 2001-02 sugar season (October-September).

However, the decline in the output of cane and sugar is unlikely to affect prices, availability and the export scenario due to the huge existing inventories and a depressed domestic and global market. While domestic prices are kept in check through a controlled sugar release mechanism, international prices are expected to remain low due to large releases of cheaper sugar in the market by Brazil in the wake of its currency devaluation.

Says Prakash Naiknavare, managing director of the Maharashtra State Cooperative Sugar Factories