"Sugar production will be more than 16 MT this year. The latest reports from Maharashtra and Uttar Pradesh showed an improvement in production," Pawar had said last week.
Higher production estimate coupled with the Uttar Pradesh government lifting the ban on processing of imported raw sugar in the state will help improve domestic availability and ease pressure on sugar prices, he had said.
"This will definitely have impact on sugar prices... It will ultimately help in bringing down the prices," Pawar had said. While speaking in Parliament last week, the Minister had also said sugar prices would stabilise at Rs 35-36/kg.At present, retail sugar price is ruling at Rs 39-40 a kg across the country, compared with Rs 23 a kg in the year-ago period.
Meanwhile, Indian Sugar Mills Association (ISMA) President Vivek Saraogi said, "A slight increase in sugar output particularly in UP and Maharashtra has pushed up total production."
Sugar season runs from October to September, but crushing of sugarcane normally ends in April in Maharashtra and UP, which together produces more than 60 per cent of the country's total sugar output.Saraogi said, "We had earlier estimated 15.5 MT of sugar production in the current season. This will now increase to 16 MT."
Production in Maharasthra is likely to increase to 5.5 MT from earlier estimate of below 5 MT, while output in Uttar Pradesh may rise to 4.3 MT from 4.1 MT this year, he added.
Recently, in a meeting with the Food Ministry, the cane commissioners of sugar producing states said that the output will be in the range of 15.8-16.3 MT in the current season.
There is a gap of five million tonnes between production and demand in the country.