Sugar output in India is expected to drop 2% to 24 million tonne in the next marketing year starting October on an anticipated decline in cane production in Maharashtra, agriculture minister Sharad Pawar said on Wednesday.

“This year, we are expecting 24.5 million tonne of sugar production. Next year, it will be 24 million tonne. The setback will be in Maharashtra,” Pawar said.

Sugarcane planting is yet to start in Maharashtra, the country's largest sugar producer due to dry spells for a second straight year, he said. The situation is so severe that the state government has decided to save water for drinking purpose alone and not for planting. The minister said sugar production seems to be ‘good’ in the current season in most parts of the country other than Maharashtra and northern Karnataka.

A substantial part of sugarcane supplies in Maharashtra is being diverted to fodder, affecting supplies for sugar production, although the situation is ‘fortunately better’ in Uttar Pradesh, the second biggest sugar producer. Recently, food minister KV Thomas had said that sugar production this year is likely to increase to 25 MT from the earlier estimate of 24.5 MT due to better crop prospects in Uttar Pradesh. However, both the top sugar industry bodies — the Indian Sugar Mills Association and National Federation Of Co-operative Sugar Factories — have pegged production at 24.3 million tonne and 24.5 million tonne, respectively.

Sugar production touched 18.80 million tonne between October 1 and February 28, down 60,000 tonne from a year before, as 50 mills have closed cane crushing operations for the season so far, compared with 21 last year, showed the ISMA data.

Good production has prevented a flare-up in the commodity's prices this year following a steady rise until August.