Govt pegs 18 pc lower sugar output to 26.3 mt for 2019-20

The government on Tuesday said the country's total sugar production is estimated to decline by 18 per cent to 27.3 million tonne (mt) in the ongoing 2019-20 season on fall in sugarcane output in key growing states.

Mills have produced 19.48 mt of sugar till February of the marketing year 2019-20 (October-September), according to the industry body ISMA.

"The sugar production in the current 2019-20 season is estimated to be about 27.3 mt vis-a-vis 33.13 mt achieved in last sugar season 2018-19 which is down by about 18 per cent," Minister of State for Food and Consumer Affairs Danve Raosaheb Dadarao said in a written reply to the Lok Sabha.

The decline in sugar production is due to fall in the production of sugarcane mainly in the major sugar-producing states of Maharashtra and Karnataka, due to drought in some parts and heavy rains and floods in some other parts of these states, he said.

However, with the carry-over stock of about 14.5 mt of the previous sugar season and estimated production of about 27.3 mt in the current sugar season, the availability of sugar is sufficient to meet the domestic consumption of about 26 mt, he said.

"In view of sufficient availability of sugar in the country, the sugar prices in the domestic market are expected to remain stable," the minister said.

In a separate statement, the Indian Sugar Mills Association (ISMA), quoting market reports, said contracts for exports have been made for a quantity of over 3.5 mt, out of which about 2.2-2.3 mt have been moved out of sugar mills for shipment.

The government has given 6 mt of sugar export quota for mills in the current season.