The total sucrose production in the country would be 386 LMT. This is a little less than last year’s sucrose production of 395 LMT (359 LMT sugar + 36 LMT for ethanol production) but the second highest in the last five years.
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India is expected to produce 336 LMT sugar with a diversion of about 50 LMT for ethanol production in the sugar season (October-September) 2022-23.
Thus, the total sucrose production in the country would be 386 LMT. This is a little less than last year’s sucrose production of 395 LMT (359 LMT sugar + 36 LMT for ethanol production) but the second highest in the last five years.
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As far as the sugar production scenario is concerned, Maharashtra and Karnataka have got less sugar production this season due to reduced yield which can be attributed to ratoon crops as well as untimely rains during September-October 2022. However, some states like Tamil Nadu have higher production than last year. So overall, sucrose production is expected to be less by about 3% from last season 2021-22.
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Keeping in view the domestic consumption of about 275 LMT of sugar and exports of about 61 LMT, there is expected to be a closing balance of about 70 LMT of sugar which is sufficient to meet domestic demand for about three months. Therefore, sufficient sugar is available for domestic consumers at reasonable prices throughout the year.
It is significant that at a time when international prices of sugar are at a record high and showing no signs of decline, domestic prices have been kept stable with little increase as a result of pragmatic government policy interventions. Domestic ex-mill prices of sugar are stable and in the range of Rs 32-35/kg. The average retail price of sugar in the country is about Rs 41.50/ kg and is likely to remain in the range of Rs 37-43/kg in the coming months which is not a cause for worry.
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