The country's sugar production rose by 13.2 per cent to 47.86 lakh tonnes till December 15 in the current marketing year on higher output from Maharashtra and Karnataka.
Sugar production in India, the world's second largest producer and biggest consumer, stood at 42.29 lakh tonnes in the same period of 2014-15 marketing year (October-September).
The output rose even though the number of sugar mills crushing sugarcane this season fell to 440 from 453 in the same period last year.
Mills exported 2.5 lakh tonnes of the sweetener till December 15 and entered into contracts to ship 5 lakh tonnes during the same period.
"As on December 15, 2015, 440 sugar mills were crushing sugarcane for the year 2015-16 sugar season, and they have produced 47.86 lakh tonnes of sugar..I.E. 5.57 lakh tonnes higher than the sugar production on the corresponding date of previous sugar season, when 453 sugar mills had produced 42.29 lakh tonnes of sugar," sugar industry body ISMA said in a statement.
India is all set to produce surplus sugar for the sixth straight year at 26-27 million tonnes in 2015-16.
According to industry body ISMA, mills in Maharashtra produced 22.50 lakh tonnes till December 15 against 20.73 lakh tonnes in the year-ago period.
Similarly, production in Karnataka stood at 10.29 lakh tonnes this marketing year, which is 3.23 lakh tonnes higher than in 2014-15 marketing year.
As per reports, about 2.5 lakh tonnes of sugar have been exported by sugar mills. Contracts have been entered into for about 5 lakh tonnes till December 15, ISMA added.
"Though there has been slight increase in domestic ex- mill price of sugar, sugar mills across the country are still losing Rs 2 to 3 per kilo over their cost of production," ISMA said.
Last month, the Cabinet Committee on Economic Affairs (CCEA) decided to pay sugarcane growers Rs 4.50 per quintal for the cane they will sell to loss-making millers, a move that will cost Rs 1,147 crore to the exchequer.
The decision was hailed by ISMA, which said that millers' cane price liability would reduce by about Rs 1,100 crore, thus partly compensating their losses.
