India’s sugar production may decline to 30.5 million tonne next season

India’s sugar production is likely to decline marginally to 30.5 million tonne in the next 2021-22 season as more sugarcane will be diverted for ethanol making, a senior government official said on Monday.

Sugar production is estimated to have reached 31 million tonne in the 2020-21 season (October-September), he said.

India is the world’s second biggest sugar producer after Brazil.

“Sugarcane crop by large is good this year. We are expecting diversion of more cane for ethanol making as a result sugar production will be slightly lower at 30.5 million tonne during 2021-22 season,” Joint Secretary in the Food Ministry Subodh Kumar Singh told PTI.

In the current season, cane meant for production of 2 million tonne sugar was diverted for ethanol making, while in the 2021-22 season cane meant for production of 3.5 million tonne of sugar will be diverted, he said.

However, sugar production will be sufficient to meet the domestic consumption, which is expected to increase by 3,00,000-4,00,000 tonne at 26.3-26.5 million tonne in 2021-22 season, he added.

The domestic consumption in the 2020-21 season is estimated to be 26 million tonne.

With the likely opening stock of sweetener is estimated at 9-9.5 million tonne expected production of 30.5 million tonne, the total availability of sugar in the 2021-22 season will be 39.5 to 40 million tonne.

The domestic consumption is seen around 26.5 million tonne, while exports at 7 million tonne in the next season. The closing stock at the end of the next season would be around 6-6.5 million tonne.

According to the official, about Rs 83,000 crore cane dues have been cleared so far against the total Rs 91,000 crore payable in the current season.

“The balance of Rs 8,000 crore is left. In the next one month, arrear may come down further,” he added.

(Only the headline picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information commentary on developments that are of interest to you have wider political economic implications for the country the world. Your encouragement constant feedback on how to improve our offering have only made our resolve commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed updated with credible news, authoritative views incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better more relevant content. We believe in free, fair credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism subscribe to Business Standard.

Digital Editor

Source link