Sugar output may dip 11%, says govt, rules out ethanol diversion impact on prices

Govt rules out ethanol diversion as cause of sugar price rise, cites lower output, festive demand and crop damageNEW DELHI: Sugar production during the current season (Oct-Sept) is estimated around 306 lakh tonnes, 11% lower than the initial projection of 343 lakh tonnes for the year by sugarcane-growing states, govt said Friday. It also dismissed allegations of diversion of sugar for ethanol production hitting availability of the sweetener and spike in prices, stating that smaller amount of sugar goes for ethanol production than was the case a few years ago.The lower output is expected to reduce the opening stock of sugar on Oct 1 to around 33-34 lakh tonnes, down from 50 lakh tonnes a year earlier - around two-thirds of last year's level. Officials, however, said the carry-over stock wou