Indian is the second largest sugar manufacture in world. Brazil being the largest sugar manufacturer in the world. Sugar industry is of seasonal nature. Sugarcane is crushed during October to May. Sugar produced during this period is sold through out the year. Sugar sale is regulated by government of India by releasing sugar sale quota for a quarter in advance. Government varies the sugar quota for each month according to sugar demand. Government may also release additional quota for any give month if it is of the opinion that prices in retail market have increased. Thus government tries to keep a control on sugar prices and also ensuring that millers get proper realization for their produce.
Sugar production in country during sugar season 2006-07 was 28 million. Sugar production of 2006-07 was higher by around 47% in comparison to production in sugar season 2005-06. At the beginning of sugar season 2007-08 it was estimated that sugar production during 2007-08 would be around 35 million MT. Sugar production in country during sugar season 2007-08 was around 26.4 million tons against estimate of 35 million MT. Sugar output during sugar season 2008-09 was 14.5 million tones which very low compared to 2007-08. Estimated sugar production for the year 2009-10 is to increase by 10-15% from 2008-09 and estimated production is 16 million tons. Planting conditions and acreage for 2010-11 would be known. On current reckoning, there is nothing to suggest a bounce back in cane acreage to anywhere close to 5 million hectares. So, in all likelihood, India’s sugar woes may well continue
Sugar consumption in country for sugar season 2009-10 is estimated around 24 million tons. Sugar consumption in Country is increasing at the rate of around 4-5% p.a.