Domestic sugar production in the current sugar year (October-September) will decline by 6-8 per cent to 24-24.5 million tonnes from 26 mt in 2011-12, mainly due to weak and delayed monsoon in key growing regions, according to rating agency ICRA.
Maharashtra has witnessed the largest decline followed by northern Karnataka. But Uttar Pradesh is likely to see higher production because of more sowing in the previous seasons and better weather conditions, it said.
ICRA estimates domestic consumption at around 23-23.5 mt. Thus, sugar stocks will remain stable at around 5.5-6.0 mt, enough to meet three months’ domestic consumption, it said.