NEW DELHI (Commodity Online): India’s sugar import for 2009-10 season is expected to surge to record level of six million tonnes owing to sharp decline in the country’s internal production driven by erratic monsoon.

According a report by the US Department of Agriculture (USDA), India, the largest sugar consuming country in the world, is likely to have imported nearly 2.8 million tonnes of sugar so far and the private mills have contracted for more in the coming months.

Out of six million tonnes, five million tonnes would be in form of raw sugar and one million tonnes of sugar would be in refined form, USDA said.

Quoting industry sources, the report said mills have already contracted about 2.5 mt of raw sugar for imports in the first quarter (October-December) of the 2009-10 season. This apart, traders have contracted another 3, 00,000 tonne refined sugar for import, it said.



Meanwhile, sugar prices in the domestic market Monday surged because of strong demand. Mill-delivery sugar Simbhaoli and Asmoli prices rose in Delhi Monday on strong demand from stockists.

Stocks with most western Uttar Pradesh sugar mills were said to be negligible as crushing could not commence due to a deadlock over sugarcane prices. However, mills may start crushing operations within a day or two as the deadlock is now over.

However, the issue with the country’s sugar farmers over the state fix price for the produce has not been sorted out yet. India’s both Parliament Houses were halted for two days last week over price issue.

India’s Food and Supply Minister, Sharad Pawar, will likely to take up the issue for discussion with the farmers and the opposition in tomorrow. The reports said the Minster was asked to the take discuss the issue with the opposition by the members of the Parliament.

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