Sugar production will reach 25 million tons despite weak monsoon: A Vellayan

HYDERABAD: India's sugar production may touch 25 million tons in the current year despite a weak monsoon, Murugappa Group Executive Chairman A Vellayan said today.

"UP is a big question mark. Maharashtra (will have) excess cane production. (In) Karnataka also there will be excess production. Over all there will be 25 million tonnes of sugar production (during the harvesting season that starts from October)," Vellayan said at a press conference here.

Government's decision to increase the import duty on sugar will boost the domestic industry, he said.

With opening stock of 7.5 million tonnes at the start of next marketing year and a projected rise in production, Indian Sugar Mills Association had earlier said the availability would be sufficient to meet annual demand of 24.5 million tonnes.

EID Parry India, a Murugappa group company, produced 6.01 lakh tonnes of sugar last year against 4.67 lakh tons in 2012-13.

"We do not want any sporadic import in the name of import. I think the government has come to support the domestic industry and strengthen the domestic production," he said.

"Sugar prices are lowest in the world in India. India has opening stock of eight million tonnes. There is no sense in importing. Forex is in short supply and the government has done the right thing," he added.

Replying to a query, he said rainfall deficit has come down to 15 per cent and it may further improve. "In the last two weeks the deficit has come down to 15 per cent in the addressable market as far as we (fertiliser firms) are concerned in Karnataka, Andhra Pradesh and Orissa. I think we have to see next three weeks how it pans out. Current indications are looking positive," he said.

The overall group performance is expected to improve with better economic indications, he said.