As per latest estimates of sugar industry body ISMA, sugar output is expected to be at 27 million tonnes (MT) in 2015-16, compared with 28 MT estimated earlier in July and almost 5 per cent lower than 28.31 MT produced in 2014-15, an eight-year high, the study said.
"Prolonged El-Nino impact might adversely affect cane production in the coming year. Besides, aggressive sugar export strategy with declining domestic production is likely mount pressure on domestic prices from 2016 summer," the study added.
The industry body also said that the country is facing shortfall of vegetable oils and pulses and a recurring monsoon failure might push the country into a tight corner with respect to sugar.
"Given the huge domestic demand for sugar, government needs to closely monitor both prices and stock situation. Already, a section of global exporting community is evaluating possibility of India entering international market for import of these commodities from 2017," the study added.
"We need better crop and food management," the chamber said.