Indian sugar mills association

Govt sees India mid-season sugar stocks at 16 mln tn, dn 14% on yr

--Govt source: India Mar 31 sugar stock 16 mln tn vs 18.7 mln yr ago

--Maharashtra Mar 31 sugar stock 5 mln tn vs 7 mln tn

--Uttar Pradesh Mar 31 sugar stock 4.5 mln tn vs 5.0 mln

NEW DELHI - ~lls in the country had only 16.0 mln tn sugar in stock at

the end of March, a drop of over 14% from the year-ago level of 18.7 mln tn,

a senior government official said today.

"The year-on-year drop in stock is only partly due to a decline in

production ... (It is) also because of higher sales in the first half of the

sugar season," the official said.

According to Indian Sugar ~lls Association, the country had produced

21.5 mln tn sugar till in the fist six months of the sugar season, nearly 7%

lower than 23.1 mln tn in the year-ago period.

The association sees India's total sugar output in the current season

that ends September at 23.8 mln tn, as against 25.1 mln tn a year ago.

"The decline in production is smaller than the decline in mid-season

stocks," the official pointed out.

He said that in Maharashtra, Mar 31 stocks are estimated at about 5.0 mln

tn, according to data submitted by mills, as against 7.0 mln tn a year ago,

while

in Uttar Pradesh, Mar 31 stocks are pegged at 4.5 mln tn, down from 5.0 mln tn.

Wholesale sugar prices in Mumbai have increased by about 500 rupees per

100 kg over the last two months amid brisk domestic sales, export demand for

raw sugar and concerns that output may be hit next season if rains are poor.

Sugar traders said prices could firm up further in the coming days, as

carryover stocks are seen lower.

The government expects the country to have 6.0-6.5 mln tn sugar carryover

at the end of this season on Sep 30, much lower than 8.5-9.0 mln tn a year ago.

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