Govt pegs 2016-17 sugar output at 22.52 MT; down 10.27%

Though, India's sugar production in 2016-17 season (from October to September) that started from previous month is expected to be around 10.27% less than last year at around 22.52 million tonnes (MT), but there won't be any shortage of the commodity in the domestic markets, food minister Ramvilas Paswan said on Thursday.

The country's sugar production had declined to 25.1 MT in the 2015-16 season due to drought in major growing states.

Paswan on Thursday reviewed prices and availability of sugar in the country in a meeting with senior officials of his ministry.

After the meeting, the Minister said, "The production of sugar has been estimated at about 22.52 MT in the current sugar season."

It may be noted that the government's sugar production estimates for this year are lower than 23.26 MT pegged by Indian Sugar Mills Association.

The sugar estimates for this year have been finalised after a recent meeting with sugar commissioners of cane growing states.

Despite expected drop in sugar output for the second straight year, Paswan said, "Total availability in the country would be sufficient to meet the domestic consumption." While the domestic sugar consumption is estimated at about 25.5 MT, the stock position at the close of the 2016-17 season is likely to be at 4.73 MT, which will be carried forward for the next season, he added.

The Minister also said the government has taken necessary steps to maintain sufficient stocks in the country and keep the sugar prices under check.

Sugar production is estimated to fall in 2016-17 season because of likely decline in sugarcane output in key growing states like Maharashtra, on account of drought during most of the 2015-16 season.

However, in the next 2017-18 season, Paswan said, "Sugar production is expected to be good and is likely to start early and therefore there will be no shortage of domestically produced sugar in India."

By November 2017, another 2 MT would be available from early crushing, he added.