ISMA expects sugar stocks to increase to 5.9 mn tn in 2009-10.

NEW DELHI: The country is expected to have sugar stocks of 5.9 million tonnes in the current crop year, ending September, about 84 per cent more than the previous year, leading industry body ISMA said on Tuesday.

The closing stock of sugar during the 2008-09 crop year stood at 3.2 million tonnes in India, which is the world's largest consumer of the sweetener, the Indian Sugar Mills Association (ISMA) said in a statement.

According to ISMA, domestic sugar production in the current crop year is estimated at 18.8 million tonnes, while consumption is projected at 21.4 million tonnes.

This year's domestic sugar output, plus the balance stock of 3.2 million tonnes from the previous year and estimated imports of 5.3 million tonnes, will increase the total availability to 27.3 million tonnes 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 million tonnes of raw and 0.89 million tonnes of white sugar, ISMA said, adding that 0.6 million tonnes of sugar is expected to arrive by the end of the current crop year.

The country also has a stock of 1.2 million tonnes 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 this year.

Source : economictimes.indiatimes.com