US farm body pegs India output at 25 mt

The US Department of Agriculture, in its November report, late Thursday forecast India's sugar output for the current season ending September at 25.1 million tonne raw value.

The country produced 19.3 million tonne of the sweetener in 2005-06 (Oct-Sep).The report pegs India's consumption at 21.0 million tonne, while its export potential is seen at 2 million tonne.

Reports of India's higher sugar output and export potential are likely to bring cheer to local sugar companies, clamouring for lifting the ban on sugar exports in the face of rising supplies, low demand, and falling prices.

The export ban, now in its fifth month, has been imposed to curb domestic prices and tame inflationary pressure. With stocks of 4.7 million tonne at the start of the current year, the total sugar availability this season has been pegged at 29.8 million tonne, the U.S. farm body said.

It has pegged global sugar output at 155.2 million tonne, up 10.5 million tonne from last year. Consumption is however, lower at 146 million tonne , up 3.2 mln tn from a year ago.

Exports are forecast at 47.7 million tonne, down 3 million tonne from a record 50.7 million tonne in 2005-06. The report pegged year-end global stocks at 33.2 million tonne, up 4.2 million tonne from a year ago. The report attributed the rise in global sugar output to higher production in Brazil, India, China and Thailand.

However, the European Union's output has been forecast to fall to 16.4 million tonne from 21.8 million tonne last year.

The output is likely to be lower following a 36 per cent cut in export subsidies, in accordance with a World Trade Organisation ruling. As a result, exports from the EU are likely to decline by 7.2 million tonne from a year ago to 1.5 million tonne, the report said.