Mumbai: India, the world's second biggest sugar producer after Brazil, is likely to churn out a surplus for the fifth straight year despite erratic rainfall in key growing areas, a leading industry body said on Wednesday.
The south Asian country is likely to produce 25 million tonnes to 25.5 million tonnes in 2014/15 year starting October 1, compared with local demand of about 23 million tonnes, the Indian Sugar Mills Association said in a statement.
The surplus production could depress local prices and increase losses of debt-ridden sugar mills, prompting the country to maintain exports to trim rising inventory.
Copyright: Thomson Reuters 2014
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