INDIA: ISMA raises 2009/10 production forecast 5%
Published: 03/09/2010, 11:17:55 AM
India is expected to produce 16.8 million metric tonnes of sugar in 2009/10, the leading millers body said on Tuesday, raising its output forecast by 5% as yields have improved, according to Reuters.
Higher production in India, the world's top consumer and a big importer this year, will put further pressure on New York raw sugar futures, which fell 3% on Monday, nearing four-month lows.
The Indian Sugar Mills Association (ISMA) had earlier estimated that the country would produce 16 million tonnes but yields in the top producing states, Maharashtra and Uttar Pradesh, had improved, ISMA president Vivek Saraogi said.
Several sugar mills have started winding up operations as they have crushed all available cane and many others are likely to shut down by end-March.
"Yield has improved in Maharashtra and Uttar Pradesh. Since we are in March, the numbers look pretty accurate," Saraogi said.