Indian sugar production to fall by 7 percent: ISMA

Q.  Indian sugar production could decline by what percent as a result of likely drop in sugarcane output on account of poor rains in Karnataka and Maharashtra?
- Published on 11 Jul 16

a. 7
b. 6
c. 5
d. 4

ANSWER: 7
 
Indian sugar production could fall by 7 percent to 23.26 MT in the next marketing year commencing in October with a decrease in sugar output on account of rainfall deficit in Maharashtra and Karnataka.
  • Sugar output is estimated to fall for the second straight year in 2016-2017 marketing year on account of drought in major sugar producing states.
  • Sugar production in India, the world’s second largest sugar producer after Brazil is estimated as having fallen to 25.1 MT in 2015-2016 marketing year ending September from 28.3 MT in the previous year.
  • ISMA has released the preliminary estimate indicating sugar output was pegged at 23.26 million tonnes in 2016-2017.
  • This is around 1.8 to 1.9 MT less than current production of 25.1 MT.
  • This is in concordance with the government’s estimate of 23-23.5 MT for the next year- ISMA attributed the likely fall in sugar output to a decline of 5.5 percent in sugarcane acreage to 4.99 million ha in 2016-2017 as against 5.28 million ha in the previous year
  • This results in lower sugar cane output.
  • ISMA data indicates sugar production in Maharashtra- the biggest producer in India- is estimated to decline to around 6.15 MT in 2016-2017 from 8.40 MT in the present year.
  • The area under cane cultivation in 2016-2017 fell due to a drought like situation whereby there was poor rainfall and lesser water availability for irrigation.
  • Cane area in the state is currently 7,80K ha as against 1.05 million ha in 2015-2016.
  • UP is the second largest sugar producing state. Here the production is estimated to rise to 7.54 MT in 2016-2017 marketing year from 6.82 MT in the present year.

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