Sugar production up by 14% till Mar 15 of 2011-12 marketing year

The country's sugar production has increased by 14 per cent to 21.16 million tonnes till March 15 in the current marketing year that started October last year, according to industry data.

Sugar production of India, the world's second largest producer and biggest consumer, stood at 18.57 million tonnes in the year-ago period, Indian Sugar Mills Association (ISMA) said in a statement today.

"ISMA still maintains that the sugar production will be 26 million tonnes in the current season 2011-12," it added.

The Food Ministry has pegged sugar output at about 25.2 million tonnes for 2011-12 marketing year (October-September).

Maharashtra, the country's largest sugar producing state, has produced 7.3 million tonnes till March 15, which is 13 per cent higher than the last year. Sugar production of Uttar Pradesh is also up by about 13 per cent to 6 million tonnes.

The southern states of Karnataka and Tamil Nadu have also reported higher output of 3.2 million tonnes and 1.08 million tonnes, respectively.

As against 419 sugar mills which were operational on March 15 last year, 476 mills are operational as on March 15, 2012.

Considering the opening balance of 6.8 million tonnes and production of 26 million tonnes, ISMA urged the government to immediately allow further exports to reduce the surplus sugar which is estimated to be over 2-2.5 million tonnes.

"Since demand in international market is more for raw sugar, the permission should be given by end of March 2012 so that mills could produce raw sugar before they shut their operations expected by mid-April or so," it said.

ISMA noted that further exports would help in paying cane price arrears, which have mounted to unprecedented levels.

The government has so far allowed exports of 2 million tonnes of sugar in two equal tranches. India had exported 2.6 million tonnes of sweetener in the 2010-11 marketing year.