India is expected to produce 25.64 million tonnes of sugar in the 2015/16 cane crushing season that began in October, a government source said on Tuesday, lower than the previous official forecast of 26 million tonnes.

The government arrived at the output of 25.64 million tonnes after a meeting of officials from key producing states, the source added.

The second straight drought has cut cane yields and is likely to hit sugar output in India, the world's biggest producer of the sweetener after Brazil.