India’s sugar production is estimated to increase marginally to 24.6 million tonnes in the
2011-12 crushing season, which starts next month, owing to a rise in sugarcane output, Food Minister K V Thomas said on Wednesday.
Sugar production of India, the world’s second largest producer and biggest consumer, stands at 24.3 million tones in the current season (October-September).
Interestingly, the government’s projection is much lower than the industry’s production estimates of 26 million tonnes.
“Yesterday, there was a meeting of cane commissioners of 10 major sugar producing states. Based on their report, the country’s sugar production is estimated to rise slightly to
24.6 million tonnes next season as against 24.3 million tones in the current season,” Thomas said.
Thomas, however, said, “This is a conservative estimate which means production will not be below 24.6 million tonnes.”
Sugar production is likely to rise in 2011-12 on the back of marginal increase in cane production, which is estimated to have risen to 342.2 million tonnes from 339.16 million tonnes.
Asked about allowing exports for next season, Thomas said: “As of now there is no proposal. We will review the situation after festivals.”
The government had allowed exports of 2.6 million tones of sugar in the 2010-11 season as production exceeded domestic consumption after two years.
Sugar production rose to 24.3 million tonnes in the current season from 18.8 million tonnes in the previous year. The annual domestic demand is pegged at 21-21.5 million
tonnes.
The minister informed that cane price arrear to farmers currently stands at Rs 755.43 crore, which is lower compared during the last few years.
Thomas noted that prices of the sweetener are currently stable.
The government yesterday extended the stockholding limits on sugar till November to keep prices under control during the forthcoming festive season.