"It could even go upto 160 lakh tonnes if everything goes well," National Federation of Cooperative Sugar Factories Limited chairman Shivajirao G Patil told a joint sugar industry press conference here on Wednesday.

The projected production is against 128 lakh tonnes produced during the last season.

Output was expected to be good in view of a good sugarcane crop in the major growing states of Maharashtra, Uttar Pradesh and Tamil Nadu.

While sugarcane production was expected to rise by 120 lakh tonnes in Maharashtra, it was likely to increase by 6-7 lakh tonnes in Uttar Pradesh despite damage to crop by rains and three lakh tonnes in Tamil Nadu.

However, 55 lakh tonne carryover stocks from the last season could have an impact on the industry's financial position and this could even lead to reduced production next season,unless government expedites measures to curb imports.

Against the estimated production, domestic consumption was projected to be 145 lakh tonnes, Indian Sugar Mills' Association president Shishir Bajaj said.

India's record sugarcane production has so far been 162 lakh tonnes in 1995-96.