Food Min pegs sugar output in 2010-11 at 24.5 MT, up by 29%

The food ministry today kept the sugar production estimate unchanged at 24.5 million tonnes for 2010-11 season, up by nearly 30 per cent from last year.

"We are sticking to the earlier estimate of 24.5 million tonnes for 2010-11 season (October-September)," a senior food ministry official told reporters here after the meeting with cane commissioners of all the sugar producing states.

The estimate was based on the inputs received from all the state cane commissioners. The government's forecast is lower by one million tonnes from industry estimates of 25.5 million tonnes.

Sugar production of India, the world's second-largest producer, stood at 19 million tonnes in 2009-10 season.  

The official said the production could be higher or lower than 24.5 million tonnes and the real picture would emerge only by the end of January.

India, the world's largest consumer, needs 23 million tonnes of sugar annually to meet its domestic demand.   

On the hopes of better production this season and about five million tonnes of opening stock, the government has so far allowed exports of about two million tonnes of sugar. 

While 5,00,000 tonnes have been permitted under Open General License (OGL), the food ministry has asked mills to fulfil pending export obligation of about one million tonnes. Besides, the ministry also allowed exports of 6,00,000 tonnes of imported sugar lying at ports.

The country had imported six million tonnes of sweetener since February 2009 as production was lower than the demand in 2008-09 and 2009-10 seasons at 14.7 million tonnes and 19 million tonnes, respectively.

Imports coupled with estimates of higher production in 2010-11 season helped the government in bringing down the sugar prices to about Rs 30-32 per kg in Delhi from nearly Rs 50 per kg in early January this year.