Sugar output seen higher, govt mulls help for industry

Sugar production in India is estimated to go up 25-30% in the sugar year 2017-18

Sugar production in India is estimated to go up 25-30 per cent in the sugar year 2017-18 (the year begins on October 1), with higher sowing of cane and a 11 per cent increase in the government’s recommended minimum price to growers.

However, high production after a year of low output could spoil sugar mills' balance sheets, with a fall in open market prices. The output is estimated to rise from 20.3 million tonnes in the season that ends this September to 26.7 mt in the next one, estimates Rabobank, the Dutch-based financial group. Industry leaders, however, estimate 25-25.5 mt.