Sugar output in India top producer rises 40.3 pct

MUMBAI, - Sugar output in India's top producing state of Maharashtra rose 40.3 percent by April 15 and the state is likely to end the season with a 45.7 percent higher production, a government official said on Wednesday.

"Higher recovery rate in February and March lifted sugar output. By April 15 mills crushed 55.9 million tonnes of cane and produced 6.44 million tonnes of sugar," said a senior official of the state's Sugar Commissionerate, who declined to be named.

The state had produced 4.6 million tonnes in 2008/09 and initially industry was expecting the state to produce 4.7 million tonnes in sugar year ending September 2010.

But, higher availability of cane due to unseasonal rains and improvement in recovery rate forced an upward revision in output forecast to 6.7 million tonnes for 2009/10, the official said.

Higher than expected output in Maharashtra trimmed deficit in the world's biggest consumer and helped domestic sugar prices to plunge from a record high earlier this year.

In Kolhapur, a key market in Maharashtra, the price of the most traded S-variety sugar dropped 1.5 percent to 2,602.5 rupees ($58.5) per 100 kg on Wednesday, the lowest since August 6.

The price has fallen over a third since a record high of 3,972.3 rupees on Jan. 7.

The country is likely to produce 18.0-18.5 million tonnes of sugar this year, a leading industry body said on March 31, raising the forecast by 7-10 percent. See [ID:nSGE63001S]

"A few mills in the state have closed operations due to lower cane supply and many more will close operations in next fortnight. Only 10-15 mills can run operations till mid-May," the official said.

source: reuters