Sugar production down 10 per cent in October-Jan

India's sugar production fell by 10 per cent to 128.55 lakh tonnes in the first four months of the 2016-17 marketing year that started October last, due to lower cane production in Maharashtra because of drought.
Sugar marketing year runs from October to September.
For the 2016-17 season, Indian Sugar Mills Association (ISMA) has recently revised sugar output estimates downward to 21.3 million tonnes from its earlier projection of 23.4 million tonnes. It has lowered the sugar consumption estimates to 24.2 million tonnes for this year taking into account reports of sluggish sugar sales.
"As on January 31, 2017, sugar mills in the country have produced 128.55 lakh tonnes of sugar, as compared to 142.80 produced last season on the corresponding date," said in a statement.

About 334 sugar mills are still operating in the current sugar season, whereas 494 sugar mills were operating last year at the end of January.
Mills in Uttar Pradesh have produced 45.59 lakh tonnes of sugar till January as against 35.94 lakh tonnes in the year ago period.

"As per field reports on yield and drawl of cane for sugar production, sugar mills in UP are expected to produce another 39-40 lakh tons of sugar.
In Maharashtra, mills have so far produced 36.76 lakh tonnes of sugar compared with 54.17 lakh tonnes in the corresponding period of the previous marketing year.

"Along with reports of lower sugar production in the current season as compared to that expected earlier, reports are also coming in of lower sugar sales.
"Last year in January 2016, almost 25 lac tons of sugar was dispatched by sugar mills, whereas the off-take has been significantly lower in January 2017. The trend noticed in October- December 2016 with sugar sales by mills was lower by 5.5 lac tonnes in 2016-17 (sugar season), is continuing in January 2017 also," ISMA said.
With the Government deciding against providing subsidy for PDS sugar to the state governments which last year was Rs 4500 crore but this year proposed to be reduced to Rs 200 crore, the association said that there might be a lower off-take of sugar sales for PDS and ration shops.

Further, it said that some states which maintain buffer for distribution through ration shops may not do so in future.