ISMA revises India's sugar output upward by 2% to 26.5 million tonnes for 2019-20

New Delhi: Industry body ISMA on Tuesday revised the country's sugar production upward by two per cent to 26.5 million tonnes for the ongoing 2019-20 marketing year, much lower than last year but enough to meet the local demand.

It may be noted that a senior Food Ministry official on February 24 had said the total sugar output would be around 27 million tonnes this year.

Indian Sugar Mills Association (ISMA) had in November last year pegged sugar production at 26 million tonnes for the 2019-20 marketing year (October to September) considering fall in sugarcane crop in key growing states, compared with 33.16 million tonnes during the 2018-19 marketing year.

Already, about 17 million tonnes of sugar has been manufactured by mills till February 15. Annual sugar consumption in India, the world's second largest producer after Brazil, is about 26 million tonnes.

Releasing the latest data, ISMA said: "Sugar production during 2019-20 would be slightly more than what was estimated in November 2019. ISMA has accordingly revised its sugar production estimates upwards from 26 million tonnes to 26.5 million tonnes for 2019-20. The production estimate has been revised after considering reduction of sugar following higher production of ethanol by way of diversion of B-heavy molasses and sugarcane juice, it said in a statement.

According to the second estimate, production in UP, the country's largest sugar-producing state, is estimated to be 11.8 million tonnes this year, almost similar to 2018-19 production.

However, in Maharashtra, sugar production is estimated to drop by almost 40 per cent to around 6.2 million tonnes in 2019-20 as against 10.72 million tonnes in 2018-19.

"Based on our analysis, we expect higher yield from the balance sugarcane available for harvesting which is mainly in areas which are high yielding districts like Kolhapur,

Satara, Sangli and Pune," ISMA said.