Commodity News: Sugar Output 2010 and 2011 in India

India's sugar output in 2010-11 season is estimated at 24.5 million tonnes (MT) against the annual domestic demand of 22.5-23 MT, the government today informed Rajya Sabha.

The Union Minister of state for agriculture, Prof KV Thomas today informed, ?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.?

Meanwhile, the government had earlier estimated 25.5 MT of production for the season 2010-11.

Last season, India's sugar production stood at 19 MT in 2009-10 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 this year.

India 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.