New Delhi, August 8
As pressure builds up on the Centre to curb sugar exports due to deficient monsoon and rising prices, a worried sugar industry stepped in to assure that the production in 2012-13 will be 25 million tonnes, marginally lower than the current year's output of 26 MT but more than sufficient to take care of the country’s domestic consumption of 20-21 MT.

While industry representatives admit that there are concerns of decreased yield due to drought in parts of Maharashtra and Karnataka, they are certain that good sugarcane output in other areas like Uttar Pradesh will cover up the gap, if any.

Poor monsoon and uncertainty over the next year’s crop has sparked off a rally in domestic sugar prices. While ex-mill gate prices in North India have shot up from around Rs 20 a kg to Rs 35 just in the past fortnight over worries of drought impacting the crop in Maharashtra and Karnataka, retail prices are also hovering around Rs 40 to Rs 50 a kg depending upon the quality.

According to the Indian Sugar Mills Association, however, the increase in prices has nothing to do with the deficit monsoon or decrease in sugarcane productivity.