India produced 5.73 million tonne of sugar between October 1 and December 31, 2013-the first quarter of the current sugar year. This is 29 per cent below the
output in the corresponding period of the previous season, due to a late start by sugar mills in states such as Uttar Pradesh.
According to data released by Indian Sugar Mills Association (ISMA) on January 2, the country produced about eight million tonne sugar between October 1 and December 31, 2012. The gap between the output in the current and previous year was 50 per cent until mid-December, and narrowed to 29 per cent by the end of December. The gap is expected to continue to narrow in the coming months.
Maharashtra, the largest sugar producing state, has produced 2.21 million tonne this season - about 24 per cent less than last year.
Uttar Pradesh , the country's second-largest producer, was next, with 1.13 million tonnes of sugar - 42 per cent less than last year's output during the same period.
The state's private industry, which accounts for bulk of the sugar output, had delayed crushing by more than two weeks, after a dispute with the state government on sugarcane pricing. Karnataka, the third largest producer, produced 1.2 million tonnes, which is 25 per cent lower than last year.
ISMA expects sugar production will be about 25 million in the current sugar season (October 2013 to September 2014). India produced 25.14 million tonnes last season. Domestic consumption is 22 million to 23 million tonnes.
India, the second-biggest sugar producer after Brazil, has surplus stocks of over eight million tonnes as of October 31, 2013. Sugar prices have been bearish in the international market, making exports less attractive.
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