Sugar production in the 2016-17 sugar season, beginning October 1, is projected at 234 lakh tonnes, 6.7 per cent lower than the production of 251 lakh tonnes expected in the current year.
According to the first advance estimate made by the Indian Sugar Mills’ Association, based on a second set of satellite images of the sugar crop, total cane acreage in the 2016-17 sugar season is likely to be 49.99 lakh hectares.
This is about 5 per cent less than in 2015-16.
There is, however, no need for import of sugar as domestic availability was plentiful, said sugar millers.
“Considering the healthy opening balance of 75 lakh tonnes (lt) and estimated sugar production of 234 lt in 2016-17, the country would have sufficient sugar stock in 2017-18. Therefore, the committee of ISMA unanimously agreed that there is no need to import sugar,” a release issued by the Association, on Wednesday, said. The outer limit of annual sugar consumption in the country is 260 lt.
Sales slumpSugar sales in 2015-16 have been lower as compared to 2014-15, but it is due to a correction in demand as there was a steep abnormal jump in sales in 2014-15, the release explained.
Till the end of August 2016, sugar mills had dispatched 226.50 lt compared to 237 lt during the same period last year.
It is expected that domestic sales till the end of September for the 2015-16 sugar year may be around 250-251 lt (as against 256 lt last year).
“This will leave a closing balance of around 75 lt, which may be higher if 23-24 lt is not sold by sugar mills in September,” the release said.