An impressive 25 per cent rise in sugar output to 17.5 million tonne during 2005-06 is expected to check the rising prices of the sweetener, which went up due to low domestic output and high global prices, the Economic Survey said.
"The increase in prices of sugar in 2004-05 has subsided in the current year though the prices continued to rule at a higher level," the Survey tabled in Parliament said.
Sugar productiion which had declined to around 14 million tonnes in 2003-04 and 2004-05 sugar seasons (Oct-Sep), due to drought and pest infestation in major sugar producing states of Maharashtra, Tamil Nadu, Andhra Pradesh and Karnataka, is expected to touch 17.5 million tonne this year.
It said the availability and prices of sugar in the current season are expected to remain at reasonable levels due to higher output.
The survey attributed the high prices to drought and higher international prices which had increased from 10,951 per tonne on April 2005 to Rs 15,457 per tonne on December 28 last year.
As far as sugarcane output is concerned, it is estimated to touch 257.7 million tonne in 2005-06, an increase of 10.9 per cent over last year.
The importance of sugar industry in India can be judged from the fact that there are about 45 million tonne sugarcane growers and a large number of people depend on sugarcane and sugar industry for their livelihood.
There are 571 installed sugar mills in the country with a production capacity of 19.2 million tonne.
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