Indian Sugar Mills Association (ISMA) has significantly reduced its sugar production assessment for sugar season 2016-17 (October to September) to 21.3 million tonnes from 23.5 million tonnes earlier. The fall is largely due to a drought-like situation prevailing in the western and southern producing belts in 2015-16 sowing season.

According to sources in ISMA, whose members met on Wednesday in Hyderabad, the sugar mills' apex body also reduced the consumption estimate from 25.5 million tonnes earlier to 24.2 million tonnes. 

This is largely due to fall in demand from bulk and even retail consumers during the December quarter, the first quarter for sugar season, by 5,00,000 tonnes. This will lead to a consumption level of 24.2 million tonnes during the whole year.