Sugar Production May Fall Up To 20% Due To Drought In Maharashtra, Karnataka.

Sugar production this year may fall up to 20%, mainly because of drought in Karnataka and Maharashtra, two of the top three sugar producing states. Sugar has recently been in the news with the BJP government in Uttar Pradesh trying to ensure that mills clear Rs 4,000 crore which they owe to farmers in arrears. Government has cleared import of 5 lakh tonne sugar to balance the shortfall in domestic production. Despite lower production, India will not face sugar crisis due to a combination of domestic stocks and imports. ISMA is the apex body representing the non-cooperative private and public sugar mills in India. Domestic production of sugar this year is expected to be 203 lakh tonne, compared with 251 lakh tonne of last year.