Sugar availability to be more than demand in 2016-17: Govt

Thursday, Jun 23, 2016,11:55 IST By metrovaartha A A A

New Delhi | The government Wednesday said there would be no shortage of sugar in the 2016-17 season starting October despite forecast of drop in production by up to 2 million tonnes. There is more than enough sugar in the country to meet the domestic requirement. Even in coming sugar season 2016-17, there would be no shortage of domestically produced sugar in India, an official statement said.

The total availability of sugar during 2016-17 season will be over 31 million tonnes including 7 million tonnes of opening stock, against the annual demand of 26 million tonnes. The government has pegged sugar output in India, the world’s second biggest producer after Brazil, to be 23-24 million tonnes in the coming 2016-17 season, much lower than the estimated 25.1 million tonnes for this year. With the closing stock of about 7-7.5 million tonnes and the estimated production of about 23-24 million tonnes during 2016-17, the total availability of sugar during 2016-17 season will be over 31 million tonnes, against the domestic demand of about 26 million tonnes, it said.

During the current sugar season 2015-16, India had started with a carryover stock of 9 million tonnes of sugar. The sugar production has been estimated at about 25.1 million tonnes this season against the demand of 25.5 million tonnes. Exports being low, the stock position at the close of the current sugar season will stand at 7 million tonnes which will be carried forward for the next sugar season 2016-17, the statement added. The government has taken necessary steps to maintain sufficient stocks in the country. It has imposed 20 per cent duty on export of sugar and has empowered state governments to impose stockholding limits on traders, it added.