``Initial reports received from factories indicate that there was a drastic fall in recovery ranging from 0.6 per cent to 1.6 per cent of cane,'' the minister said while inaugurating the annual general meeting of the Indian Sugar Mills Association (ISMA) here today. He, however, added that owing to the existing stocks, the production would be sufficient to meet the requirement of sugar for the next 12 months. The sugar industry has estimated 155 lakh tonnes output for the current season (October 1998 to September 1999).

Barnala also exhorted the sugar industry to adopt better technologies. On the contentious issue of hike in the sugar import duty, he said the Government would soon take a decision after discussing it inParliament.``India is the largest producer of sugar. But the industry is using obsolete technology. It must adopt newer technologies,'' he added. The minister also urged the sugar mills to keep cane payments up to date. Barnala questioned the industry on why the prices of sugar have not decreased due to the large volumes of imports.

Shishir Bajaj, president, ISMA, answered the minister's query by saying that the break-even price for sugar mills has increased from Rs 14 to Rs 14.25 to Rs 14.75 to Rs 15 a kg this year.

The mills give 40 per cent of their production to the Government at a fixed price for the public distribution system. ``Unless industry gets break-even cost, it would not be possible for us to survive,'' Bajaj said.