Moneycontrol
Last Updated : Sep 28, 2016 05:17 PM IST | Source: PTI

ISMA revises sugar output upwards slightly at 233.7 lakh tonne

Despite fall in production due to drought in last two consecutive years, Indian Sugar Mills Association (ISMA) said there is no need to import sweetener as the country has enough stock to meet domestic demand.


India's sugar production estimate has been revised upward by one lakh tonne to 233.7 lakh tonne for the 2016-17 marketing year starting next month but still the output would be lower by 7 percent from this year on fall in cane sowing area, according to industry body ISMA.


Despite fall in production due to drought in last two consecutive years, Indian Sugar Mills Association (ISMA) said there is no need to import sweetener as the country has enough stock to meet domestic demand.


In its preliminary estimate in July, ISMA had pegged sugar output at 232.6 lakh tonne in the 2016-17 marketing year (October-September).


Sugar production of India, the world's second largest producer after Brazil, is estimated to decline to 251 lakh tonne in 2015-16 marketing year ending this month from 283 lakh tonne in the previous year.


"In 2015-16 season till 15th September, sugar mills have produced 250.5 lakh tonnes of sugar and it is expected that mills may produce another 0.50 lakh tonnes in the remaining 15 days, taking the total production in 2015-16 season to 251 lakh tonnes," ISMA said in a statement.


Releasing the first advance estimate for 2016-17, ISMA said: "As per second set of satellite images, sugar production in 2016-17 season is estimated at 233.7 lakh tonnes, around 1 lakh ton higher as compared to the preliminary estimates made in July 2016 at 232.6 lakh tonnes".


On the basis of the September 2016 satellite images, ISMA has estimated the total cane acreage at 49.99 lakh hectares, which is about 5 percent less than 2015-16 season.


Sugar production in Maharashtra during 2016-17 marketing year is estimated at 62.7 lakh tonnes, 25 percent less than actual production of 84.11 lakh tonnes this marketing year.


In Uttar Pradesh, sugar production in 2016-17 is estimated to rise at 76.6 lakh tonnes from 68.40 lakh tonnes this year.


"With carry over stock of 75 lakh tonnes from 2015-16 season and expected sugar production of 234 lakh tonnes in 2016-17, there will be enough sugar available in 2016-17 season to meet the domestic demand of about 256 lakh tonnes (considering a demand growth of 2.5 percent) in the next season," ISMA said.


Stating that the opening stock would be around 52 lakh tonnes for 2017-18 marketing year, ISMA said: "...there is no need to import sugar." "As per past records, sugar mills produce on an average 18-20 lakh tonnes in the first two months of the season i.e.


October and November. Accordingly, this expected sugar production of 20 lakh tonnes in the first two months of 2017-18 season would supplement the expected carry forward stock of 52 lakh tonnes.

"Furthermore, with normal monsoon across the country, including in major sugarcane producing States like Maharashtra and North Karnataka, sowing of sugarcane is back to normal and, therefore, 2017-18 season is expected to give surplus sugar production again," ISMA said.

First Published on Sep 28, 2016 05:10 pm
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