Sugar output may dip to 24 MT next yr on poor rains: ISMA

The country's annual sugar demand is 22 million tonnes. Mills are estimated to have produced 26 million tonne of sugar in the ongoing marketing year (October-September).

Indian Sugar Mills Association (ISMA) said it has reviewed its preliminary sugar output estimate of 25 million tonnes for the next year taking into account the likely fall in production in Maharashtra and Karnataka due to poor rains and cane diversion.

"Accordingly, the first advance estimate of ISMA now stands revised to 24 million tonnes sugar for 2012-13," it said in a statement.

Production in Maharashtra, the country's biggest sugar producing state, is expected to decline by 28% to 6.5 million tonnes in the 2012-13 marketing year from nine million tonne this year.

The fall in output would be because of deficit rains and diversion of sugarcane to the tune of 3-3.5 million tonnes for fodder purpose in the state, ISMA said.

Similarly, sugar output in Karnataka is likely to be down by 21% to three million tonnes from 3.8 million tonnes in the review period, due to fall in acreage and yields.

The industry body said sugarcane acreage in the state has fallen by 2.1% to 4.23 lakh hectare from last year, due to sluggish rains. Also, cane yield and sugar recovery level are seen to be lower in some districts.

Maharashtra and Karnataka contribute 40-45% of the country's total sugar production.

However output in Uttar Pradesh, the country's second biggest sugar producing state, is expected to be higher at 7.9 million tonnes next year against 6.97 million tonnes in 2011-12, it said.

Sugar output in Uttar Pradesh is seen on an higher side because cane acreage is at the highest ever level of 24.74 lakh hectares due to good rains, better yields and recovery, ISMA added.

According to the industry body, the opening balance of sugar for 2012-13 marketing year would be around six million tonnes and "there will be enough sugar to meet the domestic requirement throughout the next year."