Sugar output to be higher than demand for 6th year in row

India's sugar production is projected to surpass domestic demand for sixth year in a row at 28 million tonnes in the marketing year beginning October 2015, industry body ISMA said today.
Total sugar output is estimated at 28.3 million tonnes for the ongoing 2014-15 marketing year. Of this, sugar mills have manufactured 28.03 million tonnes as on June 30, it said in a statement.
According to the Indian Sugar Mills Association (ISMA), higher sugar output is estimated on likely better yields in some growing states even as overall area under sugarcane is 5.35 million hectare in 2015-16, almost similar to this year.

ISMA has estimated total sugar output at 28 million tonnes in the 2015-16 marketing year, lower by 3,00,000 tonnes from this year, but much higher than the projected demand of 25.2 million tonnes for the same period.
Barring Maharashtra, sugar output in other major states are expected to be better than this year.
As per ISMA's latest projections, output in Uttar Pradesh - second largest sugar producing state - is estimated to rise by 3.5 per cent to 7.35 million tonnes in 2015-16, as against 7.1 million tonnes this year.

In Maharashtra - the leading sugar producing state - is projected to decline by 7.6 per cent to Rs 9.7 million tonnes in 2015-16 on likely impact on yields following poor rainfall in the state.

Similarly, sugar production in Karnataka is expected to increase marginally to 4.98 million tonnes in 2015-16 from 4.96 million tonnes this year, while sugar output in Tamil Nadu is pegged at 1.27 million tonnes.
ISMA said these are preliminary projections and it would release the first advance estimates for the 2015-16 marketing year in September. By then the crop will be fully mature with better clarity on monsoon progression too.