The country’s sugar production is projected to fall by eight per cent to 23.2 million tonnes in 2013-14 marketing year starting October mainly due to lower output of sugarcane, according to USDA report.
Sugar production of India, the world’s second largest producer and biggest consumer, is pegged at 25.2 million tonnes in the 2012—13 marketing year (October-September), the US Department of Agriculture (USDA) said in a report.
“India is set to become a net sugar importer in MY (marketing year) 2013/14 on relatively strong domestic prices,” it added. The annual domestic consumption is about 22 million tonnes.
The Department attributed the expected decline in sugar production to lower cane production and higher diversion for alternative sweetener.
The gur prices are expected to remain relatively strong compared to sugar prices in the next marketing year, it added.
On state-wise, the report forecast that sugar production of Maharashtra could decline by 26 per cent to 5.87 million tonnes in the 2013-14 marketing year from 7.91 million tonnes in the current year.
Karnataka’s output might fall to 2.69 million tonnes in the next year from 3.12 million tonnes in the current year.
However, sugar output of Uttar Pradesh is expected to rise to 8.4 million tonnes from 7.72 million tonnes during the period under review.
On sugar decontrol, the department said the government’s reform of marketing controls on the sugar industry would give millers greater flexibility in managing sales and cash flows, which will ensure timely payment to cane farmers.