Sugar output seen to fall 11% to 252 lakh tonnes in 2015-16

Sugar production in the country is estimated to fall by 11 per cent to 252 lakh tonnes this marketing year ended September due to lower sugarcane supply in Maharashtra, Karnataka and Uttar Pradesh.
However, there is no shortage of sugar in the country, Food Minister Ram Vilas Paswan said in a written reply to Lok Sabha today.
He said the government is closely monitoring sugar prices in the domestic market as well as sales by millers.
"During the current sugar season 2015-16 (October- September), the production of sugar has been estimated to be about 252 lakh tonnes which is less as compared to last sugar season's production of 284.63 lakh tonnes," Paswan said.

Sugar production declined mainly due to low sugarcane production and its availability to sugar mills for crushing in the states of Maharashtra, Karnataka and Uttar Pradesh, the Minister said.
With the carry over stock of 90 lakh tonnes and an estimated production of 252 lakh tonnes, the total availability of sugar would be more than estimated domestic demand of about 256 lakh tonnes.

"As such, there is no shortage of sugar in the country," Paswan said.
The minister said in recent past, certain quarters were indulging in speculative activities and holding their stock in anticipation of price rise.
To stabilise price, the Centre has imposed stock holding and turnover limits on sugar traders. "The government is also inter-alia closely monitoring prices of sugar in the domestic market as well as sales by sugar mills," Paswan said.

"The area, yield and production of sugarcane in the state of Maharashtra has reduced during current sugar season 2015-16 as compared to last season 2014-15 due to drought situation. This affected sugarcane availability to sugar mills for crushing," the Minister said.