Agriculture Minister Sharad Pawar and Food Minister K V Thomas have differed on sugar production estimates, with former pegging it at 25.5-26 million tonnes as against 24.6 million tonnes projected by the Food Ministry— a development that may have implications on exports.
"My impression is that there is some mistake in the calculation. I will collect the proper figure by Monday and then give it to the Food Minister," Pawar told reporters when asked about his views on the latest sugar production data released by the Food Ministry.
Thomas had said yesterday that sugar output is estimated to rise by only 1.2% to 24.6 million tonnes in 2011-12 marketing year which starts next month. The data was based on the reports of cane commissioners of 10 big producing states.
The Food Ministry's projection is much lower than the estimates of Indian Sugar Mills Association, which has pegged output for 2011-12 (October-September) at 26 million tonnes.
Asked whether the lower output estimate by the Food Ministry would delay exports, Pawar said: "Global prices will become unfavourable if there will be a delay. The government had to provide about Rs 1,500 crore to mills as export assistance a few years ago. We do not want that situation."
"I think production will be between 25.5 and 26 million tonnes. This year, monsoon has been good and reservoir position is good. So, the withdrawal (recovery rate) of sugar from cane will be higher than the current season," he said.
Pawar and Thomas not only have different views on production data, they differ on timing of allowing sugar exports during next season as well.
Earlier this week, Pawar had said that the government should announce the export policy by October second week to give a clear-cut message to millers. But yesterday, Thomas had said exports would be considered after the festival season.
Pawar and Thomas have had differences on many occasions over allowing export of food items such as wheat, rice and sugar after Thomas took an independent charge of the food and consumer affairs ministry in mid-January this year.
While Pawar had favoured exports of wheat and non-basmati rice on account of surplus production and lack of storage space, the Food Minister was of the view that cautious approach should be adopted as allowing exports might lead to increase in retail prices.
During the current marketing year, the government has allowed exports of 2.6 million tonnes of sugar. Industry is expecting that the Centre would permit larger quantity next year on higher production.
Sugar production of India, the world's second-largest producer and biggest consumer, have risen to 24.3 million tonnes in the current marketing year against 18.9 million tonnes in the previous year. The annual demand stands at 21.5 million tonnes.