Domestic sugar output increases 19.5 per cent

India's production in the October-January period of 2006-07 sugar season has jumped by 19.5 per cent to 122.56 lakh tonne. Maharashtra is leading with 42.5 lakh tonne, followed by Uttar Pradesh at 38 lakh tonne and Karnataka at 11 lakh tonne.

According to the data compiled by National Federation of Cooperative Sugar Factories (NFCSF), the domestic sugar production till January 31 is 122.56 lakh tonne against 102.53 lakh tonne in the corresponding period of last year.

"The country is on its way to see a record sugar production this year. We may end up producing in excess of 230 lakh tonne", said Vinay Kumar, managing director of NFCSF.

Meanwhile 1.4 lakh tonne sugar has been exported between October and February 10, to Indonesia, Malaysia, Bangladesh and Iran, according to a food ministry official.

Of this, 90,000 tonne was exported under the advance licence (AL) scheme after government lifted the ban on AL exports on December 18. The remaining quantity was exported under commitments that had already been undertaken and for which letter of credit had been issued when India imposed ban on exports in July last year.

Sugar mills have secured permits for exporting 4 lakh tonne of sugar since the export ban withdrawal. Of this, about 2.10 lakh tonne are under the advance licence (AL) scheme, while rest are under open general licence (OGL). With a glut situation expected in production that may exceed 230 lakh tonne, more sugar is likely to go out.

After a long period of downslide, sugar scrips recovered by 5-10 per cent on an average following a recovery of 345.65 points in the Sensex, that closed at 14355.55 points.

Bajaj Hindusthan, the country's largest sugar producer, jumped by 12.86 per cent to close at Rs 160.55. Balrampur Chini, Dhampur Sugars and others also closed higher. The rise is unlikely to sustain, feels investment advisor S P Tulsiyan.