The country's sugar production is estimated to have risen 15 per cent to 8.4 million tonnes as on January 15 in the current crop year.
"Production is about 8.4 million tonnes, about 15 per cent more than what the country had produced in the same period last year," a senior government official told reporters in the national capital.
The government has estimated total sugar production at 24.5 million tonnes in the ongoing 2010-11 crop year (October-September), against 19 million tonnes in the previous crop year.
The country's annual demand of sugar is pegged at 23 million tonnes.
Meanwhile, Food Secretary B C Gupta said: "I am optimistic about sugar production, we will review the production sometime early next month".
At present, sugar prices in retail market are ruling at Rs 31-33 per kg. In the wake of rising inflation, the government had recently put on hold the export of 5 lakh tonnes of sugar under the Open General Licence scheme.