Allaying fears of a sharp fall in sugar production during 2008-09, a recent meeting of cane commissioners from major sugar producing states have estimated production to be around 220-230 lakh tonne next year, slightly less than last year?s actual production of around 260-270 lakh tonne.
Industry sources had earlier predicted production to be around 190 -200 lakh tonne in 2008-09.
?Though initial estimates indicate that sugar production could be less than last year, we are quite hopeful that with revival of rains in most areas after a brief lull, chances of further rise in production has brightened,? a senior government official said.
He said situation on ground is not as bad as being projected in some quarters and there is every possibility that production could increase.
As per the latest government data, sugarcane has been sown in around 43.9 million hectare till July 31, down from 53 million hectare last year. Sugarcane is sown during June to July while harvesting starts from September. Crushing commences roughly around the same time.
Last year, the country produced around 260-270 lakh tonne of sugar, down from around 310 lakh tonne a year before.
Though production is expected to fall this year, sources said that availability would not be affected by much as this year?s closing stock is expected to roughly remain around last year?s closing stock of 120 lakh tonne.
?With a such a huge closing stock, sugar availability should not be an issue in the coming year,? the official said, adding that total availability could be around 340- 350 lakh tonne in 2008-09.
?I believe that the trough in sugar production would be much less than anticipated and we could expect production to rise by 2009-10 onwards only,? he added.
Sugar prices could rise in the coming weeks because of expectations of low production and strong demand during festivals, the official added.