Sugar production in India, the world's second largest producer after Brazil, is estimated to decline by 10.27 per cent to 22.52 million tonnes in ongoing season, but stock availability will be sufficient to meet the domestic demand. The country's sugar production had declined to 25.1 million tonnes in the 2015-16 season (October-September) due to drought in major growing states.
The government's sugar production estimates for this year are lower than 23.26 million tonnes pegged by Indian Sugar Mills Association (ISMA). The sugar estimates for this year have been finalised after a recent meeting with sugar commissioners of cane growing states.
While the domestic sugar consumption is estimated at about 25.5 million tonnes, the stock position at the close of the 2016-17 season is likely to be at 4.73 million tonnes, which will be carried forward for the next season.
Moreover, the government has taken necessary steps to maintain sufficient stocks in the country and keep the sugar prices under check. Sugar production is estimated to fall in 2016-17 season because of likely decline in sugarcane output on account of drought in key growing states including Maharashtra.
However in the next 2017-18 season, Sugar production is expected to be good and is likely to start early and therefore there will be no shortage of domestically produced sugar in India. By November 2017, another 2 million tonnes would be available from early crushing.
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