Rating agency Icra has revised downwards its sugar production target for 2019 to 30.7 million tonne from its earlier estimate of 31.5 million tonne due to a decline in UP, the largest growing state.
The agency however, said even at this level, sugar supply will be higher than demand.
The agency on Friday said production may be further hit due to the diversion of 'B' heavy molasses and sugarcane juice away from sugar into ethanol.
The agency said a downward revision in sugar production estimate to 30.7 million tonne (as against the first advanced estimate of 31.5 million tonne in October 2018) along with a series of government support measures -- both by the Centre and the states -from May 2018 have provided some relief to sugar mills hit by supply glut.