The Indian Food Ministry has estimated India’s gross sugar production for the current season, which began on October 1, at 34 million tonne (mt), which is lower than the nearly 35 mt estimated by the industry body, the Indian Sugar and Bio-energy Manufacturers Association (ISMA).
The government is taking a cautious approach to permitting exports, weighed down by the lower-than-expected output, increased diversion toward ethanol, concerns over the next sugarcane crop, and a delayed start of sugar factories.
“There is no hurry, and sugar prices are stable despite Dussehra and Diwali being celebrated in the same month,” an official source said. The source added that based on last year’s experience, a cautious approach is necessary over October-December production, as there are fears of a likely drop in sugarcane yield and recovery rate in some States. The official said the net sugar output may be about 30 mt.
