Sugar stocks enough for four months

India’s current sugar stock position is enough to take care of the demand for the next four months, despite lower production of the sweetener this year.

According to industry sources, sugar mills have over 9.3 million tonnes (MT)of stocks (including carryover from last year), which is around 66 per cent of the estimated output of 14.16 MT till May-end this season. Sugar season runs from October to September.

If the quota of about 2 MT for June is deducted from the stocks, assuming that the entire quantity was sold in that month, at least 7.3 MT of sugar should be available between July and September as the new season will begin from October.

Though the quota varies from month to month as demand rises in festive season, industry experts said 7 MT of sugar can meet the demand for four months.

The Centre yesterday released 1.66 MT of sugar, both levy and non-levy, for July.

The industry has pegged the sugar output at 14.7 MT while the government estimates it at 15.8 MT for current 2008-09 season.

The sources said mills in Maharashtra had a stock of 3.06 MT while the output in the current season was 4.55 MT as on June 1, 2009.