Sugar millers seek more time for buffer stock sale

MUMBAI (Reuters) - Indian millers have requested the federal government for more time to sell sugar from the dismantled buffer stock, a senior industry official told Reuters on Wednesday.

Sugar supplies in India in the open market in September may rise up to 2.1 million tonnes after government early this month said it will convert all unsold sugar as on Sept. 30 from the dismantled buffer stock into levy sugar.

"We have requested the government to extend the duration for sale from the dismantled buffer stock. We may get a reply in a week to ten days," Vinay Kumar, managing director of the National Federation of Co-operative Sugar Factories Ltd, said.

Levy sugar is sugar the government buys at lower than market price. The government distributes this sugar to the poor through a public distribution network.

Government, which controls the sector, is expecting additional 850,000 tonnes to 950,000 tonnes to be sold by the millers from their allocated buffer stocks.

In addition, the government has already allowed sale of 1.2 million tonnes of sugar in the open market.

Government had set up two buffer stocks of 2 million tonnes and 3 million tonnes last year to help millers saddled with excess supplies. The buffer was dismantled early this year.