India will have a sugar stock of 31 million tonnes in 2016-17, says govt

India will have sugar stock of about 30-31 million tonnes for the next sugar season 2016-17, which would be sufficient to meet domestic consumption needs of around 25.5 million tonnes, as per government estimates.

Sugar production during 2016-17 season is estimated 23-24 million tonnes. Along with an estimated carryover stock of 7.3 million tonnes from the current sugar season, the availability of sugar for domestic consumption will be 30-31 million tonnes, against the demand of about 25.5 million tonnes. Hence the government does not anticipate any shortage of domestically produced sugar in the country.

During the current sugar season 2015-16, India had started with a carryover stock of 9 million tonnes from the previous season (2014-15). Production of sugar has been estimated at about 25.3 million tonnes in the current season. This leaves enough stock for the current and the coming sugar season.

Reports, meanwhile, said India, the world's second-largest sugar producer, may harvest the smallest crop in seven years after drought cut cane planting.

Output will probably drop 7 per cent to 23.5 million metric tonnes in the year beginning 1 October, from an estimated 25.3 million tonnes this season, according to the median estimate of  Indian Sugar Mills Association data. The government estimated 2016-17 output at 23 million tonnes to 24 million tonnes.

The prevailing drought conditions have prompted farmers to cut cane planting to conserve water for drinking. Sugar cane production has declined in Thailand and China as well, setting the stage for the first global deficit in five years.