The country?s sugar output in 2010-11 season is estimated at 24.5 million tonne (mt) against the annual domestic demand of 22.5-23 mt, the government said on Friday.

?The production of sugar during current sugar season (October-September) 2010-11 is provisionally estimated at about 24.5 mt against the provisionally estimated demand of about 22.5-23 mt,” minister of state for food and agriculture KV Thomas said in a written reply to Rajya Sabha.

India, the world’s second largest sugar producer, had produced 19 mt in the 2009-10 season. The government?s initial estimate is 1 mt lower than the industry’s forecast of 25.5 mt for the 2010-11 season.

The minister said there is no proposal to impose import duty on raw and refined sugar before December 31, 2010. Early last year, the Centre had permitted duty-free import of raw and refined sugar up to December 31. The country imported about 6 mt of sugar to meet the domestic demand.

On decontrol of the sugar sector, Thomas said, ?No decision has been taken by the central government to decontrol the present controls over the sugar sector.? The government fixes the fair and remunerative price (FRP) of sugarcane every season. FRP is the minimum price that mills have to pay to cane farmers for buying their produce.

Besides, it also fixes the sugar quota to be sold every month in the open market as well as through ration shops.

Meanwhile, rabi sowing has been going at a brisk pace across, though wheat acreage till now is around 30% lower on year, which officials said would be made up in the next few weeks after the full winter sets in northern India and the standing sugarcane crop is harvested in Uttar Pradesh, one of the biggest wheat growing state.

India had produced a record 80.71 million tonne of wheat, a rabi crop, during 2009-10 crop year. The government is targeting 82 million tonne of wheat in the ongoing rabi season.

Wheat has been sown in 70.75 lakh hectare area as on Friday against 101.62 lakh hectare during corresponding period last year, down 30.37%, according to an official statement.

According to government officials, wheat sowing in major producing areas are expected to be completed by the end of November. Similarly, acreage of oil seed in the rabi season has dropped by 13% vis-a-vis last year.

Area coverage under oil seed was 58.533 lakh hectare area against 67.533 lakh hectare in the previous year, it added. Pulses have been sown in an area of 76.25 lakh hectare against 82.85 lakh hectare last year, a drop by 7%.