New Delhi, Apr 2 (KNN) The All India Sugar Traders Association (AISTA) has raised its sugar production estimate for the 2023-24 season (October-September) by 0.4 million tonnes to 32 million tonnes.

While higher than the initial projection, this revised figure is still lower than last season's output of 32.9 million tonnes.

The upward revision is attributed to increased production in the key sugar-producing states of Maharashtra and Karnataka.

According to AISTA's second estimates, Maharashtra's sugar output is now pegged at 10.8 million tonnes, up 1.2 million tonnes from the first estimate of 9.6 million tonnes.

Similarly, Karnataka is expected to produce 5.1 million tonnes, 0.4 million tonnes more than the earlier estimate of 4.7 million tonnes.

However, offsetting some of these gains is an anticipated decline in Uttar Pradesh's sugar production.

The state's output is now estimated at 10.6 million tonnes, down 1.1 million tonnes from the initial estimate of 11.7 million tonnes.

AISTA Chairman Praful Vithalani stated that the revised state-wise production figures could impact sugar trade flows, with more sugar likely moving from surplus Maharashtra to deficit states.

With India carrying an additional 2-2.5 million tonnes of closing stock, Vithalani suggested that the government should permit 1 million tonnes of sugar exports by June 2024 and divert another 1 million tonnes of sucrose for ethanol production at the start of the 2024-25 season.

The AISTA's second estimates are closely aligning with actual production figures for the fourth consecutive year, indicating improved forecasting accuracy.

(KNN Bureau)