ICRA sees India’s sugar production rising 16-20% in year to Sep 2018.

India’s sugar production is likely to rise 16-20% to around 23.5-24.5 mln tn in 2017-18 (Oct-Sep), owing to higher production in major producers Maharashtra and Uttar Pradesh. Sugar production by mills in south Karnataka and Tamil Nadu is likely to be hit by low rainfall and poor sowing patterns in the last seasons. Mills in the Cauvery region of south Karnataka, as well as those in parts of Tamil Nadu, are expected to be affected the most due to higher cane prices and limited prospects of volume growth. Sugar production in Tamil Nadu is seen falling more than 45% to 0.6 MMT in 2017-18 from an estimated 1.1 MMT in 2016-17.