Sugar output may rise by 4% to 25.5 MT this year

Don't want to miss the best from Business Standard?

Sugar production in India, world's second largest producer, is likely to increase by 4% to 25.5 million tonnes in the current marketing year, as per the estimates made by state governments.

The estimates were submitted during a meeting of top food ministry officials with Cane Commissioners of major sugar producing states.

"Mills in Uttar Pradesh have assured the state's cane commissioner that they will start crushing operations soon," Food Secretary Sudhir Kumar told reporters.

On sugar production this year, he said: "There will not be a situation of crisis. Production will be higher by few lakh tonnes than last year."

Later, a senior government official said the states have estimated total sugar output at 25.5 MT for the 2014-15 marketing year, as against 24.5 MT in the previous year. Sugar marketing year runs from October to September.

Sugar production of Maharashtra is estimated at 9.1 MT, while that of UP is seen at 6.2 MT and Karnataka 4.25 MT, the official said.

The estimate, as compiled by Cane Commissioners, is similar to the one made by Indian Sugar Mills Association, which had projected output at 25-25.5 MT.

UP Cane Commissioner Subhash Chand said: "Some cooperative and private owned mills in western UP will start crushing operations from November 10, while other will start factories from the third week of November."

Cane harvesting in the state has been delayed in some parts due to rains following cyclone 'Hudhud', he said, adding that the government expects 119 mills to operate this year.

An official from the Karnataka government said that about 14 mills in south Karnataka have already started crushing operations and the rest will start this week.

Total sugar production in the state is expected to touch a new record of 4.2 million tonnes this year, from 4.1 million tonnes in 2013-14, he added

The sugar stock at the beginning of this month was 6.92 MT as per the Centre's estimates, while the ISMA has pegged the opening stock at 7.4 MT.

India had exported about 2.2 MT sugar in the 2013-14 marketing year on account of incentives provided by the Centre on the shipments of raw sugar.

The industry is demanding the extension of export subsidy on raw sugar even this marketing year.