MUMBAI, Dec 4 (Reuters) - Indian spot sugar prices fell for a fourth consecutive session on Friday on government plans to shore up sugar stocks, mainly through imports, dealers said.
In Kolhapur, a key market in top producer Maharashtra, the price of the most traded S-variety sugar was down 0.64 percent at 3,246 rupees ($70.1) per 100 kg.
India aims to stock enough sugar to meet demand for 3-4 months, a government minister said on Tuesday, indicating higher sugar imports to lift reserves from their current depleted level of around 1 month's supply. See [ID:nSP404959]
India's sugar output in 2009/10 will be little lower than previous forecasts of 16 million tonnes, the head of an industry body said, signalling higher imports by the world's biggest consumer. See [ID:nDEL409361]
India's sugar output almost halved to 14.7 million tonnes from 26.3 million tonnes in 2008/09 as many cane growers switched to wheat, and this year the worst monsoon in 37 years hit cane crop.
Hopes of increased imports from India and other Asian countries pushed London white sugar futures to record high on Thursday.
White sugar prices were boosted by expectations of Indian, Pakistani and Indonesian physical demand, before the run-up stalled in late trade.
For a graphic on Indian import demand and the rise in white sugar futures prices please see: here See [ID: nGEE5B20O3]
"Everyone fears large-sized imports could weigh on prices significantly," said a trader in Vashi, near Mumbai, a trading hub.
Source : REUTERS