Sugar output likely to reach 23 million tonne

Date 29-Jun-2010        Source THE FINANCIAL EXPRESS        Reporter        News Id 206

Delhi: After two consecutive years of lower output than demand, India sugar production is expected to rebound to touch 23 million tonne in the next crop year starting October on the back of higher area under cane. “Sugar production in 2010-11 crop year (that runs from October to September) is estimated at 23 million tonne. Area under sugarcane so far has increased by 13% at 47 lakh hectare this year,” a senior government official said. The estimate for the next crop year was arrived at a meeting with the Cane Commissioners of all the sugar producing states in the country. Higher output in the next crop year is expected to help the government keep sugar prices under control. Sugar prices in the retail market had touched nearly Rs 50 a kg in mid-January and is now ruling at Rs 32-33 a kg in New Delhi. The output in the current crop year ending September would touch 18.8 million tonne, which is nearly 3 million tonne higher than the estimates made at the beginning of the season, he added. Sugar output has been lower than the annual demand of 23 million tonne in the current as well as last year. India, the world’s second largest producer and biggest consumer, had produced 14.7 million tonne in 2008-09. The country has imported over 6 million tonne of sugar since early last year to meet domestic demand. Maharashtra, the country’s largest producer, is estimated to produce 8.6 million tonne in the next crop year, up from about 7.1 million tonne in the current year.