Govt pegs sugar output for 2010-11 season at 24.5 MT
Moneylife Digital Team 19 November 2010

New Delhi: India's sugar output in the 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, reports PTI.

"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 K V 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 31 December 2010. Early last year, the Centre had permitted duty-free import of raw and refined sugar up to 31st December this year. India imported about 6 MT of sugar to meet the domestic demand.

On decontrol of the sugar sector, Mr 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.
 

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