The Indian Sugar Mills Association (ISMA) has revised downwards sugar production estimates by a million tonnes to about 27 MT for the marketing year starting next month due to poor monsoons in producing states like Maharashtra and Karnataka.

ISMA had projected in July that sugar production in India, world’s second largest producer, would be about 28 million tonnes in the 2015-16 marketing year (October—September).

Despite downward revision of production estimates, the country’s sugar output would be higher than the domestic demand for the sixth year in a row.

“Considering further poor rainfall during SW monsoon in July and also during August in Maharashtra and Karnataka, ISMA has revised its estimated sugar production in 2015—16 sugar season to around 27 million tonnes,” ISMA said in a statement.

For the 2014-15 marketing year, production is likely to be 28.3 million tonnes. Domestic consumption and exports are estimated at 25.1 MT and 1.1 MT respectively, leaving the closing stock at 9.6 million tonnes.

“On the basis of the September 2015 satellite images, ISMA has estimated the total cane acreage at 52.8 lakh hectares, which is just 0.4 per cent less than 2014-15 sugar season,” the statement added.

State-wise, ISMA has estimated downward revision of production for Maharashtra at 9 million tonne from 9.7 million tonnes in the July projection. In the marketing year 2014-15, the state is all set to produce 10.5 million tonnes.