With reports that deficient monsoon this year could have an impact on sugarcane production, Palani G. Periasamy, President of the South Indian Sugar Mills’ Association (SISMA) – Tamil Nadu, says, “We need to wait and see for two or three months, the developments.”

“There might be balance in supply and demand. But we need to wait and see to what extent the impact will be,” he says.

Today, the mills are selling sugar at a cost which is less than the cane cost. “We are in a depressed state and there is liquidity crisis.” The surplus stock of about 10 million tonnes needs to be reduced and the industry should get back to normalcy, he says.

Since international sugar prices are less than the cost of production here, the Union Government should support the industry to export the four million tonnes of sugar mandated by it for the 2015-16 season. Several countries provide such support for sugar exports.

There is a move by the Government to come out with a comprehensive policy for the sugar industry. It should be announced at the earliest. There must be continuous efforts to balance supply and demand, he says.