Mumbai: India’s sugar production climbed 39% in the seven months ended April as mills crushed more cane from a record harvest, according to the National Federation of Cooperative Sugar Factories Ltd.
Production totalled 25.2 million tonnes (mt), compared with 18.17mt a year earlier, Vinay Kumar, managing director at the New Delhi-based association, said on 8 May in a phone interview.
The sugarcane-crushing season runs from October to September. Rising output may extend the past year’s 33% drop in prices of refined sugar in London. Bumper crops in Brazil, India and Thailand may create a 8.5mt surplus, 18% larger than forecast in February, Peter Baron, CEO of the International Sugar Organization (ISO), had said in a 13 April interview in Mumbai.
India’s sugar output may reach 26.5mt this year and 27mt in 2008 as mills in some regions continued to crush cane, Kumar said.
His estimate compares with the 27.43mt forecast by the Foreign Agricultural Service at the US embassy in New Delhi, in a report dated 20 April.
The US agency expects output to increase to 28.79mt next year. Sugarcane production may reach a record 315.5mt, up 12% from a year earlier, as farmers increased planting last year to gain from higher prices. The bumper output has raised the pressure on the government to build stockpiles and give export incentives to prevent a glut.
Mills based in coastal states receive Rs1,350 a tonne, while those located inland get Rs1,450 a tonne.