New Delhi, April 26:

Sugar production should be satisfactory for the next three years with output expected to be higher than domestic demand, Food Minister K. V. Thomas said on Friday.

“The next three years – 2013-14, 2014-15 and 2015-16 – will be comfortable for sugar,” Thomas said, based on the recent review of the performance of the sector with industry officials.

He was speaking to reporters on the sidelines of an event organised by the Bureau of Indian Standards.

“The domestic requirement is about 22 lakh tonnes and we have enough sugar for exports,” Thomas said, adding that shipments would depend on the prices in the international markets.

At present, it is unviable for the Indian millers to export sugar as international prices are lower than domestic prices.

“However, going ahead sugar production and productivity, and value addition needs to be improved,” Thomas said. In this context, a draft paper has been prepared by the Food Ministry on the improvements needed in the sector. In the third week of May at the National Institute in Kanpur, we will chalk out the various projects to be taken up for the improvement of the sector, the Minister said.

Sugar production in the country is seen lower at 24.6 million tonnes in the current season ending September, down from the 26 million tonnes produced last year. However, in the next season starting October, the production may decline marginally due to the drought in key cane growing areas of Maharashtra and Karnataka.

Early this month, the Government partially decontrolled the sugar sector by giving mills the freedom to sell in the open market, unshackling them from the obligation of supplying the sweetener at subsidised rates for ration shops. India is the world’s second biggest sugar producer after Brazil, but is its largest consumer.