Isma expects sugar stocks to increase to 5.9 mt in 2009-10

The country is expected to have sugar stocks of 5.9 million tonnes (mt) in the current crop year, ending September, about 84 per cent more than the previous year, leading industry body, the Indian Sugar Mills Association (ISMA) today said.

The closing stock of sugar during the 2008-09 crop year stood at 3.2 mt in India, which is the world’s largest consumer of the sweetener, Isma said in a statement.

According to Isma, domestic sugar production in the current crop year is estimated at 18.8 mt, while consumption is projected at 21.4 mt. This year’s domestic sugar output, plus the balance stock of 3.2 mt from the previous year and estimated imports of 5.3 mt, will increase the total availability to 27.3 mt in the 2009-10 crop year, which is much more than the consumption, it said. The sugar year runs from October to September.

As of now, sugar mills have imported 2.83 mt of raw and 0.89 mt of white sugar, Isma said, adding that 0.6 mt of sugar is expected to arrive by the end of the current crop year.

The country also has a stock of 1.2 mt of raw sugar, which was imported in the previous year, it added. The government has allowed duty-free import of sugar since February, 2009, to improve domestic supplies and curb price rise. The zero duty on sugar imports is allowed till December.