India's sugar production seen lower at 16.5 million tonnes

24 February 2009

Sugar production in the country is expected to fall to 16.5 million tonnes in the current crop year, down about 10 million tonnes from 26.3 million tonnes in the previous crop year, food and agriculture minister Sharad Pawar said.

He said the country will have to import around 2 million tonnes of sugar to meet the gap between production and domestic demand.

"According to industry, one million tonnes of raw sugar has been contracted, and we may import another 0.5 million-one million tonnes," Pawar told reporters.

While earlier estimates had put sugar production in the country at 18 million tonnes for the current crop year, Pawar said, "Latest figures seem to be somewhat about 16.5 and carry stock, last year's, is about 10)."

Pawar appealed to the cooperative sector to ensure a fair share of benefit of growth to small and marginal farmers and assured them of a supportive policy environment for healthy growth and development of cooperatives.

Sugar futures, meanwhile, slumped three per cent hitting the circuit limit, after the government decided to impose restrictions on sugar stocks that traders can hold.