Forecasts of the emergence of the El Nino phaenomenon, which often is blamed for causing deficient rainfall in India, has made the sugar industry worried about the impact on the output of sugarcane and in turn on the production of sugar. However, Subodh Kumar Singh, joint secretary at the Department of Food and Consumer Affairs, sought to allay the concerns.
“IMD (India Meteorological Department) has forecast a normal monsoon. So, production of sugar will also be in a normal range,” Singh told ET. “Even if production is impacted, it will not be that huge that there will be ashortage of sugar,” he added.
India being the second largest sugar producer in the world after Brazil, the possibility of its exports from India is significant for the global sugar supply. International sugar prices are currently ruling at an 11-year high as India is not expected to export additional sugar in the ongoing sugar season that ends in September.
“Whatever (monsoon) forecast we have, we will be in a position to export some quality of sugar next year,” said Singh, speaking to ET on the sidelines of a biofuel and bioenergy seminar organised by the West Indian Sugar Mills Association and a few other industry associations.