Sugar output is expected to be lower at 30.7 million tonnes in the ongoing marketing year 2018-19 because of a diversion for ethanol making, crop damage from untimely rains and pest attack in some states.

Lowering its estimate by 2.53 per cent, industry body ISMA said sugar production is estimated to be around 30.7m tonnes in the current marketing year taking into account expected yield and sugar recovery in the balance period of this year.

“This is after considering an estimated diversion of 5 lakh tonnes of sugar into production of ethanol through ‘B’ heavy molasses,” ISMA said.

In July 2018, ISMA had projected an all-time high sugar output of 35m tonnes in the current marketing year compared with 32.5m tonnes in 2017-18.

The estimate was, however, revised downward to 31.5m tonnes in October last year factoring in likely crop damage owing to untimely rains and pest attack in some states.

On exports, the Indian Sugar Mills Association (ISMA) said it could reach 3-3.5m tonnes in the current marketing year (October-September) against the mandatory quota of 5m tonnes unless the government takes strict action.

Cane arrears were Rs 19,000 crore till December 2018. Till January 15 of this marketing year, mills produced 14.68m tonnes of the sweetener compared with 13.55m tonnes a year ago. Mills in Uttar Pradesh produced 4.19m tonnes, Maharashtra 5.72m tonnes and Karnataka 2.67m tonnes till January 15 of this year, ISMA said.