Maharashtra may cut sugar estimate by 10%
PUNE: The Central government is not comfortable with sugar prices hovering around Rs 40kg in the wholesale market, especially with assembly elections round the corner and with major sugarproducer Maharashtra likely to project a 10% fall in production compared to initial estimates.
Due to the rising prices, the Centre has summoned cane commissioners of the sugar producing states on Tuesday to assess the production and stock situation. Maharashtra’s production figures are being keenly observed by the sugar industry.
Maharashtra had expected to produce 50 lakh tonnes of sugar in the beginning of the 2016-17 crushing season. However, three consecutive droughts coupled with insufficient rainfall in June and July, had damaged the crop.
“The per acre yield has been adversely impacted,” said a government source. The state had already assessed the production and stock situation of sugar last week. “We think the state’s sugar production may decline to 45 lakh tonne,” said another senior official.
Till January 20, sugar mills in the state produced 32.72 lakh tonne of sugar, down 27% compared to the previous year. After sugar prices started moving up about a fortnight ago and crossed Rs 40kg in the wholesale market, the Centre had warned sugar mills that it would not hesitate to take action.
Source: ECONOMIC TIMES