He further said the industry was bullish at the October-December 2018 quarter since Thailand and Brazil would not be playing around during that time and domestic producers could make most of it owing to surplus stock and higher sugar production estimates.
At 32 million tonnes, the production would be 55 per cent higher in 2017-18 as compared to the same period the previous year. Thanks to the present glut, sugar mills are reporting ex-factory under-realisation of about Rs 500 per quintal as against the production cost of Rs 3,200-3,300 a quintal.
Meanwhile, the industry has urged the Centre to announce sugar export programme in August itself, so the companies could tie up for exports by September and start sending consignments from the first week of October.
On Wednesday, the Centre approved production subsidy of Rs 5.5 per quintal for cane farmers.
Talking to newspersons here on Thursday, union food minister Ram Vilas Paswan said it would help mills clear arrears in the backdrop of the retail prices falling below production cost owing to glut.
"My ministry also favours mandatory mixing of 10 per cent ethanol in fuel to support the sugar industry."
Earlier, the Centre had doubled sugar import duty to 100 per cent, scrapped export duty to check falling prices.
According to ISMA, domestic mills have till date produced 31 million tonnes and 130 units are still operational.