New Delhi, February 18: India’s sugar production is up by 15 per cent. As per the Indian Sugar Mills Association (ISMA), of the estimated 26 million tonnes (MT) in 2014-15, 518 sugar mills currently operating in the country have already produced 16.71 MT till February 15. While for consumers higher production translates into cheaper commodity, the industry, which is crying for export incentives on raw sugar, is not exactly celebrating. Some respite seems to be in sight for the industry though as sources indicate the government may consider subsidy for raw sugar exports at the Cabinet meeting on Thursday. Food Minister Ram Vilas Paswan also indicated recently that the government could give export incentives for 1.4 MT raw sugar as mills had started distress sale to pay cane farmers. The ISMA says during 2013-14, 479 sugar mills produced 14.51 MT— an increase of 2.18 MT sugar or 15% over the corresponding period, last year. The industry estimates total sugar output in India, the second largest sugar producing nation, for the 2014-15 season to be 26 MT. Mills in western and southern India “have started offering white sugar even below Rs. 2,400/quintal ex-factory” while prices in the north were ruling around Rs 2,650/quintal. “The government should immediately take a decision on continuation of incentives on production and export of raw sugar, as was announced by the UPA Government on February 28, 2014. They will produce raw sugar only after export contracts are finalised,” it says. Till January 31, 2015, sugar mills produced only 64,000 tonnes of raw sugar whereas in 2013-14 sugar season mills had already produced 7.93 lakh tonnes of raw sugar till January 31, 2014. According to the industry association, a delay in announcement of export subsidy further depressed the domestic market and sugar mills were offering white sugar even below at Rs2,400 per quintal ex-factory and in the northern part, ex-mill prices are ruling around Rs2650 per quintal. Since start of the current crushing season, ex-mill prices in the domestic market have declined by Rs5-6 per kg.