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Original article

Sugar consumption to drop as PDS subsidy goes

CHENNAI: With the union government withdrawing the subsidy given to state governments for supplying sugar(public distribution system) from April 1 and off-take being impacted by the protests against soft drink

brands, sugar consumption would drop by 3.5% in the 2016-17 season (October-September).

Sugar consumption would decline to around 24 million tonnes in the current season, estimates showed. “This is likely to be driven by a lower off-take of sugar from the PDS, short-term consumption loss post demonetisation as well as impacted demand from bulk consumers such as soft drink manufacturers, bakeries, confectioners, hotels and restaurants, which account for around 60%-70% of milled sugar demand,” ratings agency ICRA said…