Sugar body says output to beat forecast

Sugar output is seen at about 27 million tonne in the season ended September, S L Jain, director general of the Indian Sugar Manufacturers' Association said on Monday.

The latest industry output projection for the year is at least a million tonnes higher than the government's forecast of 26 million tonnes.

Largest sugar producing state Maharashtra's output was seen at about 8.8 to 9 million tonnes as against 9.2 million tonnes a year ago, Jain said.

"There are reports that production in Maharashtra may be about 10 per cent lower this season. They are incorrect as the average sugar recovery from cane in the state is higher this year," Jain said. "Sugar recovery so far this season is about 11.9 kg per 100 kg cane, 1.7 kg higher than last year."

Jain said sugar recovery has declined only in Uttar Pradesh, the second largest sugar producer in the country, where the crop size is smaller this year as well.

"In Uttar Pradesh, we may be looking at lower output due to a smaller cane crop in the eastern parts of the state. Recoveries are also marginally lower than last year in central and eastern Uttar Pradesh," he said.

Asserting that total sugar production in the country would remain substantially higher than government estimates, Jain said the association's consolidated estimate for the season would be released in March.

"We already have commitments of over 2.5 million tonnes...deals are still being contracted. Total exports should be at least 3 million tonnes this year," Jain said.