Despite high prices the country's total sugar consumption is estimated to have jumped by 1.5 million tonnes this year.
The sugar consumption of India — the world's largest consumer of the sweetener — is estimated to have reached 23.3 million tonnes in 2008-09 season (October-September) from 21.8 million tonnes in the previous year, according to official data.
As high as 65 per cent of the total sugar is consumed by bulk consumers like food processing units and the remaining is sold through the retail market where prices have reached at Rs 35-40 a kg from about Rs 16-17 a kg a year ago.
The consumption data is based on the quantity of sugar released by the Food Ministry in both open market as well as through ration shops. The sugar sector is controlled by the government from establishing a plant to bringing the sweetener into the market. The Centre has allocated 20.54 million tonnes of sugar in the open market (called as non-levy sugar), while 2.34 million tonnes of levy sugar has been distributed through the public distribution system in the current season ending September 30.
Of the total allocation made during the year, about 15 million tonnes were from this season's production while the remaining 10 million tonnes were from the carry-over stock and imports.
