The rains during this season have been deficient by 12 percent as at the end of the month of August and though most of the canes producing regions are irrigated the dry weather is likely to affect the cane crop. Cane yields are expected to be affected as irrigation from the existing water reservoirs cannot make up for the deficit in rainfall.
In recent days, concerns have eased after the poor beginning of the monsoon season and in spite of speculation that the production would be badly impacted, sugar production is still projected to be nearly 1 to 2 million tonnes in excess of the consumption. Some adverse effects are expected for the cane field and sugar production. The consumption for the financial year 2012-13 is estimated to be around 22-23 million tonnes.
Despite recent betterment in the progress of the monsoon, the impact of scanty rain in the past months is still unclear and due to uncertainty about the size of the cane crop and the proportion of the cane crop milled for sugar versus alternative uses, India stays as a potential source of surprises for the global market.