Sugar body expects lower stocks in '04-05

India's closing stocks for sugar are projected to fall to 3 million tonnes in 2004-05 (October-September) from 8.5 million tonnes in the previous year, a senior industry official said.

He said the decline would be due to lower output compared with the domestic requirements.

"At the end of the sugar year 2003-04, the carry-over stock was 8.5 million tonnes. This is likely to decline to only 3 million tonnes by the end of the current season," president of the Indian Sugar Mills Association, Vivek M Pittie said at the annual general meeting of the body.

He said sugar output, which was at 13.8 million tonnes in 2003-04, is likely to fall to 12 million tonnes in the current year.

However, the total supply of domestic sugar would add up to 20.5 million tonnes in the current season due to last year's carry-over stocks of 8.5 million tonnes, Pittie said.

Since the domestic consumption is estimated at 17.5 million tonnes, there would still be a surplus of 3 million tonnes by the end of the season, he said. In addition, the industry is also likely to import 1.5 million tonnes of raw sugar, he said.

The government has facilitated easy import of raw sugar under the advance licencing scheme.

According to this policy, mills can import raw sugar without paying duty on the condition that they export an equivalent quantity of the finished product within 24 months of the import.