Sugar output may drop by over 7 per cent in 2016-17 : ISMA

India’s sugar production could decline by over 7 per cent to 23.26 million tonnes next marketing year starting October on a likely drop in sugarcane output due to poor rains in Maharasthra and Karnataka.

The sugar output is estimated to fall for the second straight year in 2016-17 marketing year (October-September) because of drought in major growing states.

Sugar production in India, the world’s second largest sugar producer after Brazil, is estimated to have fallen to 25.1 million tonnes in the current 2015-16 marketing year ending September from 28.3 million tonnes in the previous year.

Releasing the preliminary estimate, Indian Sugar Mills Association (ISMA) said sugar output was pegged at 23.26 million tonnes in 2016-17. “This is about 1.8-1.9 million tonnes less than the current 2015-16 production of around 25.1 million tonnes.”

Drought

This is in line with the government’s estimate of 23-23.5 million tonnes for the next year. ISMA attributed the likely fall in sugar output to 5.5 per cent decline in sugarcane acreage to 4.99 million hectare in 2016-17 as against 5.28 million hectare in the previous year.

This would result in lower cane output.

According to ISMA data, sugar production in Maharasthra — the biggest producing State — is estimated to decline to around 6.15 million tonnes in 2016-17 from 8.40 million tonnes in the current year.

“Maharashtra’s cane area has declined in 2016-17, which is mainly due to drought-like situation last year, poor rainfall and lesser water availability for irrigation,” ISMA said in a statement.

The cane area in the state is down at 7,80,000 hectare as against of 1.05 million hectare in 2015-16, it added.

Sugar production in Uttar Pradesh — the second largest sugar producing state — is estimated to rise to 7.54 million tonnes in 2016-17 marketing year from 6.82 million tonnes in the current year.

Source: THE HINDU