Better recovery of sugar from cane has thrown production estimates given by industry into disarray.

The industry too has revised its estimates to 172-175 lakh tonnes as against earlier estimates of 170 lakh tonnes during 2002-03 (October-September) sugar season.

Speaking to Business Standard, Vinay Kumar, managing director of National Federation of Cooperative Sugar Factories Ltd (NFCSFL), said, "The overall sugar recovery till December 2002 has been 10.21 per cent as against last year's recovery of 9.98 per cent during the period, which will, in turn, push up the production."

Earlier the industry had said that owing to scanty rainfall and lower sowing, the country's sugar output was likely to decline by around 14 lakh tonnes to 170 lakh tonnes.

According to the sugar industry, decline in production would be a 'blessing in disguise' as India was currently saddled with huge stocks of over 100 lakh tonnes.

Recovery of sugar from cane has risen around 0.25 per cent. Recovery in Haryana has touched 9.13 per cent compared to 8.96 per cent till December 2001, while recovery in Tamil Nadu has risen 0.67 per cent at 9.01 per cent.

Maharashtra recovery was 10.95 per cent till December 2002, up 0.25 per cent. Uttar Pradesh, Andhra Pradesh and Punjab reported unchanged 8.01-8.03 per cent recovery. This will ensure high sugar output in 2002-03 season at about 175 lakh tonne.

Mills have to undertake cost-effective crushing and byproducts sale to make up for carrying costs.

Higher recovery would create problems for the sugar industry. Sometime back, the Prime Minister had announced a mid-season hike in cane price by Rs 5 per quintal for 8.5 per cent recovery of sugar from cane with additional 0.82 paise for every additional 0.1 per cent recovery.