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Sugar production to surpass domestic demand at 28 MT in 2015-16

27 Jul 2015 Evaluate

The production of sugar in the country is projected to surpass domestic demand for sixth year in a row at 28 million tonnes (MT) in the marketing year beginning October 2015, as per data compiled by the Indian Sugar Mills Association (ISMA). The total output of sugar is estimated at 28.3 MT for the ongoing 2014-15 marketing year of which sugar mills have manufactured 28.03 MT as on June 30. The higher output is estimated on likely better yields in some growing states even as overall area under sugarcane is 5.35 million hectare in 2015-16, almost similar to this year.

The output of sugar in other major states barring Maharashtra is expected to be better than this year. The output in Uttar Pradesh - second largest sugar producing state - is estimated to rise by 3.5% to 7.35 MT in 2015-16, as against 7.1 MT this year. In Maharashtra - the leading sugar producing state - is projected to decline by 7.6% to Rs 9.7 MT in 2015-16 on likely impact on yields following poor rainfall in the state.

Similarly, sugar production in Karnataka is expected to increase marginally to 4.98 MT in 2015-16 from 4.96 MT this year, while sugar output in Tamil Nadu is pegged at 1.27 MT.