New Delhi, July 3 : The country is likely to face a severe shortage of sugar and pulses by 2021, with supply falling by over half the demand, according to a study by economic think tank the Indian Council for Research on International Economic Relations (ICRIER).

The study by ICRIER said India’s demand for sugar will rise to 55 million tonne (MT) against the supply of 26 MT by 2021 if the gross domestic product (GDP) of the country grows at 8 per cent. The demand for sugar will rise further to 65.7 MT, if the GDP grows at 9 per cent, it points out. The demand-supply mismatch projection of sugar is a serious concern for the government, which currently gives many a sops to the industry that is plagued by the problems of plenty. Indian sugar industry is facing glut in the domestic market for the second year in a row as production at 26 MT far outstripped demand of 20 MT.

The demand for pulses, too, may spiral to 38.7 MT compared with a supply of 17.6 MT by 2021 at 8 per cent GDP, ICRIER says.