India’s sugar production has been revised upwards to 26.1 million tonne for the current marketing year, industry body ISMA said on Thursday, demanding an increase in import duty and removal of export duty to check falling price.

The Indian Sugar Mills Association (ISMA) said the government should scrap 20% export duty to liquidate surplus sugar stocks. As compared to sugar offtake from mills during the last season (2016-17) of around 24.6 MT, it is estimated the consumption in the current year would be around 25 MT. “Therefore, India can export some of the additional stocks within the current season itself,” it added.

The first advance estimates of ISMA had put the production for 2017-18 at 25.1 MT.

While making a case for disposing additional stocks in the current season itself, the ISMA said sugar mills were unable to pay cane prices due to fall in prices in view of estimated rise in production.

Sugar prices have started falling below the cost of production, which could lead to cane payment arrears.