Sugar Output at 25mt, showing an increase in Sugar Production.

The Sugar Industry has posted productions numbers at a minimum of 25mt which is approximately 2mt above the 23 mt predicted by the Food Ministry, earlier this month.

This ties in with the current estimation made by the Indian Sugar Mills Association (ISMA) last week when it predicted a 19% increase to the 18.7mt estimated for the current year ( 2009 – 10) If proven true, this increase will make up for the two consecutive years of shortage.

The Decontol discussion on the matter firmly set the sugar numbers for the first Quarter. Production could even be as high as 28mt in the coming year. The Food Minister, Sharad Pawar, sent sugar rates soaring after he suggested sectoral decontrol to the Cabinet after the sugar output estimates stabilized in August. But both industry and the government experts have had serious issues over coming up with timely and accurate estimates, leading to high sugar retail prices, an artificial supply of shortages, a marked increase in global white/raw sugar prices and expensive imports.

2009 – 2010 experienced a severe drought, the worst in three decades which resulted in a decreased output of 14mt. The output estimates being reported by the Industry will allow the government to lower pressure on the cane price for farmers.

The cane planting for this year is at a very primary level. The season starts from July and extends up to September in Uttar Pradesh. Even thoughproduction of sugar is looking up, the estimate cannot be taken as definite values at this juncture. Even In the month of May, Mr. Sharad Pawar had had projected sugar output of 25mt for the 2010-11 sugar years, butthe food ministry later lowered the figures down to only 23mt. There were also reportedly differences among members over whether to stick to the higher projected figure estimate. If it does so, it will be the highestproduction of sugar after a long term of lowered production.

Source : Top News