Indian Sugar Mills Association (ISMA), the industry body of the sugar mills said that the sugar output this year is going to be better and thus raised its estimates.

The reasons are the favorable climate and more area sown this sugar season which runs from October and runs till the following September.

As against the earlier forecast of ISMA that said that 23 million tonnes (mt) will be produced in FY 2011, the figures have now been revised to 25 mt.

Talking about this, Vivek Saraogi, president of ISMA and managing director of Balrampur Chini said that both the high acreage and yields are going to make the figures better.

In the current year, the output of sugar is 274 mt that meant that the estimate was around 18.5 mt. Cane production is expected to be 300 mt, meaning a bumper crop.

Report published by rating agency, ICRA has said that the sugar output will be 25 mt. The current Average sugarcane yield in India is 70 tonnes per ha.

Better monsoon is going to boost this. That is going to bring down the prices as well.