The Indian Sugar Mills Association (ISMA) has estimated India’s SS11 sugar production at 25.5 mn MT vis-à-vis 18.8 mn MT in SS10. On the other hand,
the agriculture minister has put forth an estimate of 24 mn MT.
According to the agriculture ministry, farmers planted cane on 4.77 mn hectares as of August 26, 2010, up 14% from a year ago. National Cooperative Sugar Factories, which accounts for half the nation’s production, estimates that India may ship at least 2.5 mn MT in SS11.
In the context of the estimated surplus sugar production, the agriculture ministry believes that the time is right for the long-awaited sugar sector decontrol and has been pushing for initiation of the same.
Agriculture minister pushing for deregulating the sugar sector Proposal to remove the release mechanism, levy quota and cane area reservation; but the
government to retain the right to set FRP and SAP prices for sugarcane for some more time.
