Sugar output likely to drop by over 7 per cent in 2016-17: ISMA

New Delhi, July 9 (KNN) India’s sugar production could decline by over 7 per cent to 23.26 million tonnes next marketing year starting October on a likely drop in sugarcane output due to poor rains in Maharashtra and Karnataka.

The sugar output is estimated to fall for the second straight year in 2016-17 marketing year (October-September) because of drought in major growing states.

Sugar production in India, the world’s second largest sugar producer after Brazil, is estimated to have fallen to 25.1 million tonnes in the current 2015-16 marketing year ending September from 28.3 million tonnes in the previous year.

Indian Sugar Mills Association said in a statement that the other major sugar producing State, viz. Maharashtra’s cane area has declined in 2016-17 SS, which is mainly due to drought like situation last year, poor rainfall and lesser water availability for irrigation.

Similar to Maharashtra, due to lesser rainfall and drought like situation, sugarcane area in Karnataka has also declined in 2016-17.  Area under sugarcane in 2016-17 SS is expected to be about 4.15 lac. Ha as against 5.10 lac hac. in 2015-16 SS.  Sugar production in 2016-17 SS is estimated to be around 32.2 lac tons, as against 40.71 lac tons expected to be produced in 2015-16 SS, said ISMA.

However it said that sugarcane area in Tamil Nadu in 2016-17 SS has increased to 2.65 lac ha. as against 2.50 lac ha. in 2015-16 SS.  Due to better rainfall and expected improvement in yield, sugarcane production will also increase, resulting in better sugar production of 15.6 lac tons in 2016-17 SS as against 13.93 lac tons produced in 2015-16 SS.

ISMA data said that For the sugar season 2017-18, the opening balance of about 43 lac tons as on 1st October 2017, will be sufficient to meet the country’s domestic requirement for the two months of October-November, 2017 next to next year, during which time new season’s sugar production including the sugar produced in October-November 2017, would have comfortably come into the market.

After considering rainfall in July – September, 2016, which is already expected to be above normal, water situation in reservoirs and second set of satellite images in September 2016 for across India, ISMA will review the analysis in end of September, 2016 and will release their 1st advance estimates for 2016-17 season.  By that time, the crop will be more mature and there will be more clarity on the rainfall and water availability.  (KNN Bureau)