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India’s sugar output likely to fall by 3% to 31.5 MT in 2018-19: ISMA

30 Oct 2018 Evaluate

Amid untimely rains and pest attacks affecting the cane crop, industry body, The Indian Sugar Mills Association (ISMA) has projected that sugar output of India is likely to fall by 3% to 31.5 million tonnes (MT) in the current marketing year (October 2018-September 2019). Taking into account higher cane acreage and forecast of normal monsoon, it had projected a production of 35 MT in the 2018-19 season. It added that diversion of cane juice for ethanol also impact production. Besides, sugar production reached at an all-time high of 32.5 MT in the 2017-18 marketing year.

The ISMA reduced the sugar production estimate for the 2018-19 marketing year as the sugarcane crop in the three main growing states of Uttar Pradesh, Maharashtra and Karnataka, which contribute around 80% to the total sugar output, have been impacted adversely. It said that there would be surplus availability of sugar in the country despite estimated fall in production because of huge carry-over stocks from the previous marketing year. It added that the total availability of sugar would be 42.7 MT during 2018-19 as against the annual domestic demand of 25.5-26 MT. Even if mills export 4-5 MT of sugar, the closing stock would be significantly high at 11-13 MT.

The association has revised its sugar production estimates for UP from 13-13.5 MT tonne made in July 2018 to 12.1 MT, which is almost similar to 12.04 MT in 2017-18. In Maharashtra, sugar production is estimated at around 9.5 MT as against 10.72 MT in 2017-18. In July, ISMA had pegged output at 11-11.5 MT. Moreover, sugar production in Karnataka is now estimated at 4.2 MT from 4.48 MT projected in July.

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