By Pratik Parija
Jan. 20 (Bloomberg) -- India, the world’s second-biggest sugar maker, may produce less this year than forecast last month because of lower yields in the main cane growing states, likely tightening global supply.
Production in the year ending Sept. 30, 2009, may total 18 million tons, compared with 20 million tons forecast in December, Farm Minister Sharad Pawar said today. The estimate matches the one made by S.L Jain, director general of the Indian Sugar Mills Association, on Jan. 16.
“The sucrose content in the sugar cane is less” in the biggest producing states of Uttar Pradesh and Maharashtra this year, Pawar told reporters in New Delhi. Still, the nation has enough reserves to meet demand, he said.
Lower Indian output may widen a global deficit forecast at 5.8 million metric tons in the 2008-09 season by Czarnikow Group Ltd., supporting sugar prices in New York. India may permit duty- free imports of raw sugar to boost domestic supplies, Pawar said.
Sugar output may drop to 19.5 million tons in year to Sept. 30, the Maharashtra State Cooperative Sugar Factories Federation Ltd. said Jan. 6. Production was 26.4 million tons a year ago.
Separately, India may ease restrictions on overseas sale of aromatic basmati rice, Pawar said.
To contact the reporters on this story: Pratik Parija in New Delhi at pparija@bloomberg.net.
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