India is not heading towards a sugar shortage despite a lowering of production estimates for the ongoing crop year and there is no need to import the sweetener, sugar millers have re-affirmed.

“Based on actual sugar sales so far, the trend in January 2017 and reports of lower off-take by beverage manufacturers and sweet makers, the sugar consumption estimate for the year was revised downwards to 242 lakh tonnes. Considering these estimates along with the opening sugar stocks of 77.5 lakh tonne, there is no shortage of sugar and therefore, there is no need to import any,” the Indian Sugar Mills’ Association stated in an official release on Friday.

The industry body alleged that a few speculators and sugar refiners were spreading rumours of a shortage to suit their personal vested interests, and to create opportunities to import sugar. “Their statements on shortage of sugar, mostly made without any analysis and research, is causing speculation and volatility in the sugar market and spiking sugar prices unnecessarily,” the statement added.

Earlier this week, ISMA revised its sugar production estimates for the ongoing sugar season (October 1 2016-September 30 2017) and brought it down 213 lakh tonnes — the lowest in seven years.

The downward revision, from the initial estimate of 234 lakh tonnes in September 2016, was carried out on account of some sugar mills closing operations in drought-affected areas, mostly in Maharashtra and Karnataka.

ISMA added that in the months to come if it felt there was any need on supplementing domestic availability through imports, it would approach the government with the exact quantity needed.

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