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LATEST NEWS UPDATES | Sugar output estimate raised to 24.5 mt

Sugar output estimate raised to 24.5 mt

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published Published on Oct 20, 2010   modified Modified on Oct 20, 2010

The government on Wednesday hiked the sugar production estimate for the 2010-11 marketing year (October-September) to 24.5 million tonnes (mt) from 23 mt earlier.

"This will be the best year in terms of sugar production and productivity... The production this year will be in the range of 24-24.5 million tonnes," food, PDS and civil supplies minister Sharad Pawar said. The current government estimate is virtually on par with that of the Indian Sugar Mills Association (ISMA) which has pegged production at a minimum of 25 mt.

On the question of opening up sugar exports, Mr Pawar said, "We will consider sugar export after Diwali. We have to see the overall situation."

India is the biggest consumer and second biggest producer of sugar and any hint of a shortfall or a higher than average production (Brazil’s own sugarcane crop has questions hanging overhead still) can impact prices significantly as was the case in 2009-10 when the government raised its initial estimate of about 14 mt to 18.9 mt in the latter half of the year.

Sugar prices, both globally and locally, shot up to record highs. At home, this bolstered a double digit food inflation.

Although there is no official ban on sugar export, the food ministry is not giving export permits since 2009. Under ALS and re-export of raw sugar and white sugar, India is understood to have exported much less than one million tonnes. The country’s annual domestic demand is pegged at 23 mt.

The Economic Times, 21 October, 2010, http://economictimes.indiatimes.com/news/economy/agriculture/Sugar-output-estimate-raised-to-245-mt/articleshow/6783451.cms


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