Sugar Production in India Could Drop To 30.5 Million Tonnes in Next Season

According to a senior government source, India's sugar production would drop marginally to 30.5 million tonne in the 2021-22 season as more sugarcane is diverted for ethanol production.  In the 2020-21 season (October-September), sugar output is expected to exceed 31 million tons, he added. 

After Brazil, India is the world's second-largest sugar producer and the largest sugarcane producing state of India is Uttar Pradesh. 

"This year's sugarcane harvest is generally good. We predict more cane to be diverted for ethanol production, resulting in slightly reduced sugar output of 30.5 million tonnes in the 2021-22 season "Subodh Kumar Singh, Joint Secretary in the Ministry of Food, told PTI. 

Cane intended for 2 million tonne sugar production was diverted for ethanol production this season, while cane planned for 3.5 million tonne sugar production would be diverted in the 2021-22 season, he added. 

Sugar output, on the other hand, would be adequate to fulfill domestic demand, which is anticipated to rise by 3,00,000-4,00,000 tons to 26.3-26.5 million tonnes in the 2021-22 season, he said. 

Domestic consumption is expected to reach 26 million tons in the 2020-21 season. The overall availability of sugar in the 2021-22 season will be 39.5 to 40 million tonne, with an anticipated opening stock of 9-9.5 million tonnes and expected output of 30.5 million tonnes. 

In the next season, domestic consumption is expected to be about 26.5 million tonnes, with exports expected to be around 7 million tonnes. At the end of the next season, the closing stock would be about 6-6.5 million tonnes. 

According to the official, around Rs 83,000 crore in cane dues have been settled so far, out of a total of Rs 91,000 crore due this season. 

"There is a balance of Rs 8,000 crore to be paid. Arrears might drop much more in the coming month " he added.