Sugar output in the country could fall by one million tonne to 25 million tonne (MT) in the 2012-13 marketing year starting October, but the supply will be enough to meet the demand, Food Minister K V Thomas said.
The annual domestic demand of sugar is about 22 MT.
Sugar production in the ongoing 2011-12 marketing year (October- September) would be little over 26 MT.
"Earlier, we were expecting higher production fall. In a meeting with Agriculture Minister last week, we assessed the crop situation and now we feel production shortfall would be less. We expect total sugar production to be 25 MT next year," Thomas told reporters at an event here.
The minister's latest estimate on sugar output is in line with the sugar industry's forecast.
Last month, Thomas had said that sugar output could decline to 23 million tonne in the 2012-13 marketing year (October-September) due a fall in cane acreage following poor rains in growing regions.
According to Agriculture Ministry's first estimate, sugarcane production is projected to be lower by 6.22% at 335.33 MT in 2012-13, with maximum decline in Maharashtra and Karnataka.
On sugar export policy, Thomas said it will continue as supply of the sweetener in the domestic market would be sufficient to meet the demand next year.
"Sugar export is under the open general licence (OGL). It will continue. We cannot switch on and switch off the export policy because we do not want farmers to get hurt," the minister said.
In May, sugar exports were freed and put under the OGL. Prior to that the government had allowed two million tonne exports for the 2011-12 marketing year.
About 1.35 MT of sugar have been shipped in the first six months of the current marketing year.
For the entire 2011-12 marketing year, Indian Sugar Mills Association (ISMA) has estimated total exports at 3.5 MT against 2.8 MT in the previous year.
At present, export of sugar has become less lucrative due to a sudden rally in domestic prices on apprehensions of production drop in the next year.
On the proposed Food bill, Thomas said, "We are working very hard and we plan to introduce the bill in the next session of Parliament".
The proposed Food Bill, which aims to give legal rights over subsidised foodgrains to 63.5% of the country's population, was introduced in Lok Sabha in December 2011. It is currently being vetted by a Parliamentary panel.
Thomas said the term of the Parliamentary Standing Committee on Food, headed by Vilasrao Baburaoji Muttemwar, has expired and a new Committee is being constituted.
"I understand that Vilasrao Muttemwar will continue as chairman. After the committee submits the report, I will immediate study it and take it to the cabinet with whatever changes required," the minister said.
The Food Bill, a pet project of UPA chairperson Sonia Gandhi, was part of the promises made during 2009 general elections.
