It's official, sugar production to fall 30%

NEW DELHI: The Centre on Tuesday said sugar production may fall by over 30% to 18 million tonnes in the current season, but assured that there will
be adequate quantity of the sweetener in the country. India’s sugar production stood at 26.4 million tonnes in 2007-08 season (October-September).

'Sucrose percentage in sugarcane seems to be less by 1% as compared to last year in Uttar Pradesh, Karnataka and Maharashtra. Both recovery rate and tonnage have dropped," food and agriculture minister Sharad pawer said here.

The minister further said: "Since these are the major sugarcane producing states in the country, the anticipated production of about 22 million tonnes may come down to about 18 million tonnes."

However, Mr Pawar said that there was no need to worry as carry-over stock was quite comfortable. "Whatever the country's requirement, it will be available domestically," he added.

As per the government data, the carry-over stock from last season stood at 11 million tonnes, but industry has pegged it at 9 million tonnes. The sugar requirement of the country is 22 million tonnes per annum.

However, speaking on the sidelines of the AGM of Indian Council of Agricultural Research (ICAR), Mr Pawar said the industry's estimates of carry-over stocks at about 9 million tonnes was 'incorrect'.

"We are collecting figures from the excise department. If somebody from the industry is cheating excise, the situation might be different. I do not think anybody will go to that level," he said.

Referring to the reports of non-availability of sugarcane, he said only 10-15% of mills would be able to run their units till the end of the crushing season.

"On Monday, I reviewed sugar situation. Though cane crushing continues normally till April-end, this year we received report that it is expected to end in February itself or by the first week of March. Only 10-15% of sugar mills will be able to crush cane till April-end," the farm minister said.

He also informed that the government is considering to allow conditional import of raw sugar for domestic sale. "We will take a decision to allow import of raw sugar with a condition that they will re-export the same within two years."

Mr Pawar also said that sugar exports had not been stopped, but at the same time he said the shipments would not be encouraged. He ruled out importing refined sugar saying that the same was not required at all, because of huge carry-over stock position.
SOURCE:ET