Sugar output may drop by 7% this year

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 MT in the current 2015-16 marketing year ending September from 28.3 MT in the previous year. 

Releasing the preliminary estimate, Indian Sugar Mills Association (ISMA) said sugar output is pegged at 23.26 MT 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."

This is in line with the government's estimate of 23-23.5 MT 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 MT in 2016-17 from 8.40 MT in the current year.