Sugar output may dip to 24 million tonnes next year: Sharad Pawar

NEW DELHI: Agriculture Minister Sharad Pawar today said sugar output is likely to decline for the second straight year to 24 million tonnes (MT) in the year staring October, 2013 due to an expected lower sugarcane crop in Maharashtra.

In 2011-12 (September-October), the country had produced 26 million tonnes of sugar. However, the output for this year has been pegged lower at 24.5-25 MT.

"This year, we are expecting 24.5 million tonnes of sugar production. Next year, it will be 24 million tonnes. The set back will be in Maharashtra," Pawar told reporters here.

He said sugarcane planting has not yet begun in Maharashtra, the country's largest sugar producing state, due to the second consecutive year of poor rains. The situation is so severe that the state government has decided to save water for drinking purpose alone and not supply for crops.

In the ongoing 2012-13 marketing year (September-October), Pawar said that sugar production situation is "good" other than Maharashtra and north Karnataka.

Sugar output in Maharashtra is expected to be lower as substantial sugarcane crop is being diverted as fodder, while situation is "fortunately better" in Uttar Pradesh, the second biggest sugar producing state.

Recently, Food Minister K V Thomas had said that sugar production this year is likely to increase to 25 MT from the earlier estimate of 24.5 MT due to better crop prospects in Uttar Pradesh.

Mills have produced 18.8 MT of sugar in the first five months of the ongoing 2012-13 marketing year, while 50 mills have closed their crushing operations, as per the industry data.