The country’s sugar production is projected to fall by 8% to 23.2 million tonnes (MT) in 2013-14 marketing year starting October, as per reports compiled by the US Department of Agriculture (USDA). This fall is mainly due to lower cane production and higher diversion for alternative sweetener. The production of sugar in India, which is also the world’s second largest producer and biggest consumer, is pegged at 25.2 MT in the 2012-13 marketing year (October-September) period.
In 2013-14 marketing year, the country is set to become a net sugar importer on relatively strong domestic prices. The annual domestic consumption is about 22 MT. The gur prices are expected to remain relatively strong compared to sugar prices in the next marketing year.
On state-wise report, the sugar production of Maharashtra could decline by 26% to 5.87 MT in the 2013-14 marketing year from 7.91 MT in the current year. Karnataka’s output might fall to 2.69 MT in the next year from 3.12 MT in the current year. On the other hand, sugar output of Uttar Pradesh is expected to rise to 8.4 MT from 7.72 MT during the period under review.
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