INDIA: Farm chief sees 2009/10 sugar production at 17 million tonnes
Published: 03/18/2010, 8:21:06 AM
India will produce more than 17 million metric tonnes of sugar in 2009/10, the farm minister said, projecting a higher output than industry estimates, according to Reuters.
The Indian Sugar Mills Association (ISMA) last week raised its output forecast for the current year to September by 5 percent to 16.8 million tonnes, helping New York raw sugar futures SBc1 fall on expectations of lower imports by the world's biggest consumer.
"According to information by states it looked like production will be 16.8 million tonnes. ISMA has agreed to this figure but my personal assessment is that production will cross 17 million tonnes this year," Farm Minister Sharad Pawar told a conference.
Falling prices encouraged ISMA to urge the government to levy a tax on imports of white, or refined, sugar but Pawar said the government had no immediate plan to impose such a tax.
The government had allowed tax-free imports last year to overcome a severe shortage, which helped local prices double.