India's sugar production expected to be 25-25.5 MT: DSCL

NEW DELHI: DCM Shriram Consolidated (DSCL), a leading sugar manufacturer, today said that production of the sweetener in the country is likely to be around 25-25.5 million tonnes in the current season starting last October.

"My view is that sugar production this year should not be less than 25 million tonnes. It will be 25-25.5 million tonnes," DSCL Chairman and Sr Managing Director Ajay Shriram told reporters on the sidelines of a conference here.

India, the world's second largest sugar producer, had produced 19 million tonnes in the 2009-10 season.

Backed by a good monsoon and increased acreage, the country's sugar production was pegged initially at 25-26 million tonnes, but delayed beginning of cane crushing in key producing states has cast a spell over the projection. Industry watchers have now started believing that the output won't be more than 23 million tonnes.

Of the total 600-odd sugar mills in the country, only 199 mills have started crushing operations in Maharashtra, Uttar Pradesh and Karnataka till November 15 of the current sugar season, which runs from October to September, according to official data.

Shriram's confidence, however, stemmed from the fact that the mills in Uttar Pradesh, the nation's second highest cane- growing state, will crush canes till the end of March because of the delayed start of the season.

On sugar exports, Shriram said that the government should allow it for the betterment of both the industry as well as the country.

"It is good for the industry and the country to allow exports of sugar. The earlier it is done the better," he said.

Meanwhile, Shriram said three of the four mills owned by his company in Uttar Pradesh have started cane crushing and the fourth one also would start in a few days from now.

DSCL has 33,000 tonnes per day cane crushing capacity. He gave a negative reply when asked whether the company would like to increase the capacity.