India's sugar production is estimated to rise 24 per cent to 25.1 million tonnes (MT) in the next marketing year starting October due to an increase in the sugarcane producing area.
In a related development, the Centre has allowed import of 3 lakh tonnes of raw sugar at concessional duty of 25 per cent to augment domestic supplies ahead of the festive season. It had hiked import duty on sugar in July to 50 per cent from 40 per cent to curb dumping of the commodity in India as international prices fell.
According to officials, India's sugar demand is 24-25 MT annually. Sugarcane area is higher at 49.88 lakh hectares this year compared to 45.64 lakh hectares in 2016-17.
To boost domestic availability and check prices, it has allowed import of 3 lakh tonnes of raw sugar at 25 per cent duty for conversion to white sugar. Sugar production in India, the world's second largest producer, is estimated to decline to around 21 million tonnes in 2016-17 season ending September from 25 MT in the previous year. The annual demand is 24-25 MT. The government had in April allowed duty free import of 5 lakh tonnes of raw sugar to boost domestic supply.The global production will rise by 7 per cent to 179.3 MT, while consumption will increase 1.7 per cent to 174.7 MT.