Sugar output may dip 39 per cent to 16 million tonnes: ISMA

New Delhi (PTI): Sugar output in India may slump 39 per cent to 16 million tonnes this season, prompting the largest consuming nation in the world to import a projected 1.5 million tonnes, according to an industry estimate.

"According to the latest estimate, sugar production is pegged at 16 million tonnes," Indian Sugar Mills Association (ISMA) Director General SL Jain told PTI.

The difference between the latest projection of the government and the industry has been drastically narrowed down since the beginning of the sugar season starting October.

Earlier this week, Food and Agriculture Minister Sharad Pawar said the country might produce 16.5 million tonnes of the sweetener this season, starting October 2008, down from about 26.4 million tonnes in 2007-08.

ISMA attributed the slump in production to less cane crop and lower recovery. Recovery refers to the rate of sugar production out of cane.

According to the latest government estimate, sugarcane production may go down significantly to 290.45 million tonnes this season from 348.19 million tonnes last year.

ISMA has projected a raw sugar import of up to 1.5 million tonnes to bridge the supply-demand mismatch in the country this year. India needs 22.5 million tonnes for its annual domestic consumption.

"About seven lakh tonnes of raw sugar has already arrived from overseas," Jain said.

The government has assured of adequate domestic sugar supply as the country has over 10 million tonnes of the carry-over stock from the previous season.

The Centre had last month allowed sugar millers to import raw sugar duty-free and sell in the domestic market to boost availability. It has also decided to empower states to impose limit on the stocks of sugar a trader can keep to check hoardings and contain the price rise.

According to data available with the Consumer Affairs Ministry, retail prices of the sweetener in major cities were ruling in the range of Rs 22-26 a kg as on February 25, compared with Rs 19-21 as on October 1.

source: hindu