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India, the world's second biggest sugar producer after Brazil, is likely to churn out a surplus for the fifth straight year despite erratic rainfall in key growing areas, a leading industry body said on Wednesday.
The country is likely to produce 25 million tonne to 25.5 million tonne in 2014-15 year starting Oct 1, compared with local demand of about 23 million tonne, the Indian Sugar Mills Association said in a statement.
The surplus production could depress local prices and increase losses of debt-ridden sugar mills, prompting the government to maintain exports to trim rising inventory.
