With a sharp increase in output in the first three months of the current cane crushing season, the Indian Sugar Mills Association (Isma) has raised the country’s production forecast by four per cent or one million tonnes to 26.1 mt for 2017-18 (October-September).
It has also begun lobbying with the government on early measures to check a likely fall in prices, suggesting opening the door for export.
Total sugar production was reported at 10.33 mt in the December quarter this year, compared to 8.19 mt in the same period last year.
Considering the additional availability expected of 1-1.1 mt over the domestic requirement, Isma members have met officials in the Union food ministry on the need to dispose of some of the additional stock.
Dilip Walse Patil, president of National Federation of Cooperative Sugar Factories, on Thursday met the joint secretary (sugar) along with other industry representatives and cautioned him about the threat the sugar industry is facing because of sharply higher production than last year.
Patil said this could affect the next crushing season and the government should take immediate corrective action to protect the industry and sugarcane farmers.
He suggested a ban on sugar imports, encouraging exports and creating buffer stock of 2 mt of sugar.