Abinash Verma, Director General of ISMA, said that the yield in Maharashtra and Karnataka had dropped by more than 40 percent.
In an interview to CNBC-TV18 Abinash Verma, DG, ISMA said the news is negative for the industry and that ISMA has requested the government to continue with both cess and SDF. He added it has also requested the government to revise the cess to a lower rate rather than scrapping it completely.
The months of September and October are likely to see sugar sales of roughly 22-23 lakh tonne said Abinash Verma, Director General of Indian Sugar Mills Association (ISMA).
Abinash Verma of ISMA says the production this year is estimated to drop to around 260 lakh tonne, compared to 283 lakh tonne last year, due to weak monsoon.
"This will not only cut crude oil imports, but help in addressing the problem of pollution. Ethanol emits over 80 percent of carbon dioxide," Gadkari said.
The Bill aims at increasing sugar cess to Rs 200/quintal from Rs 25/quintal
Reports suggest that demand for sugar will outstrip supplies in 2015-16, which is indicated in the upward movement of sugar prices. Domestic sugar prices have increased to Rs 25 per kg from Rs 19 per kg in the last few months.
India's sugar stocks, however, are likely to rise to 9.6 million tonnes at the start of the season on October 1, from 7.5 million last year, said Abinash Verma, director general of the Indian Sugar Mills Association.
India is likely to bring in rules to make it compulsory for sugar mills to export millions of tonnes of surplus supplies to support local prices, sources said, in a move that could quell growing anger among farmers but add to a glut on global markets.
Abinash Verma of ISMA says the government will be bearing the interest for just one year and that doesn't seem to be an interest-free loan in the true sense of the word. Earlier, about one-and-half-years ago, the government had given a similar loan and was willing to bear the interest for five years.
Abinash Verma of ISMA says the basic problem that the industry is facing is on account of surplus sugar which will be almost 10-10.5 MT from beginning of next season â€“ which is 4-4.5 MT more than what the government norms require to carry, putting pressure on sugar prices.
Hike in sugarcane prices would increase input costs and in turn would increase cost of sugar production, says Abinash Verma, DG, ISMA.
Narendra Murkumbi, MD of Shree Renuka Sugars says the subsidy has to be Rs 4-4.5 per kg for it to be viable. He expects the subsidy on exports to be extended by one year.
India, the world's second biggest sugar producer, started the 2013-14 marketing year that began on October 1 with a carry-forward stocks of 8.8 million tonnes and is likely to produce 25 million tonnes this year, compared with its annual sugar consumption of around 23 million tonnes.
Indian Sugar Mills Association's Abinash Verma fears that the standoff between the UP government and the sugar industry may affect the mills' functioning in the crushing season. Meanwhile, top officials from the industry have also been arrested allegedly without proper reasons.
Sugar companies say that the international market is unviable for export of products and the government should provide incentives to support it.
Abinash Verma, director general, ISMA is unhappy with the government's decision to take away levy sugar burden from the industry for two years and bring it back after that.
Abinash Verma, Director General of the Indian Sugar Mills Association (ISMA) told CNBC-TV18 that he expects partial sugar decontrol to be implemented in March.
India is expected to discuss easing controls on the sugar sector in a meeting in next 8-10 days, The Economic Times reported on Monday citing Farm Minister Sharad Pawar, as domestic output prospects of the sweetener improves and as local prices fall.