Govt pulls up ISMA for premature estimation of lower sugar output for 2023-24

Food Secretary Sanjeev Chopra on Friday came down heavily on industry body ISMA saying its "highly premature" assessment of sugar production has created a panic that there is a sugar shortage in the country.

The secretary said he will hold a discussion with ISMA about this issue and added that it is too early to predict sugarcane and sugar production for the 2023-24 season, starting in October.

Chopra asserted that prices of sugar and other essential commodities will remain stable during the upcoming festival season.

Earlier this week, Indian Sugar Mills Association (ISMA) released its preliminary estimate of sugar production for the 2023-24 season (October-September) at 317 lakh tonne against 328 lakh tonne for the current season.

Addressing a press conference, Chopra said ISMA has estimated 317 lakh tonne of sugar production and 45 lakh tonne of sugar diversion for ethanol production for the next season.

"This we thought is getting some kind of panic that there is a shortage of sugar in the country. We thought we must clarify. It is highly premature to assess what will be sugar production in the next harvest beginning October," he told reporters.

As per the data available, the sugarcane area has actually gone up to 56 lakh hectare this year from 53 lakh hectare last year. So, the area has gone up although there has been a concern about patchy rainfall, he said.

"Broadly, we find that the crop is in a reasonable condition and there is no cause for panic," he said and added that the crop is still in the stage of maturity and will know sugarcane production after a month or so with greater certainty.

In terms of the availability of sugar, the secretary said the country has 108 lakh tonne of the sweetener, while 46-48 lakh tonne of sugar would be required to meet the demand in August and September.

"Even then the present availability of sugar is more than sufficient to meet the demand. So, there is no cause for panic," he said and added the country's total sugar consumption is about 275 lakh tonne.

In the upcoming festival season, Chopra said, "We are not anticipating any rise in prices in sugar, edible oils, rice or wheat. Prices will rule in a stable manner".

When asked if the government will take action against ISMA, Chopra said, "We will speak to them separately because there is no point in coming out with estimates in a premature manner that too you are estimating production much lower side".

One has to be "more responsible and cautious" about what numbers you are coming out with. Obviously, that creates a sentiment in the market, he added.