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At present, the domestic supply of sugar in India is still under great pressure on the sugar market. The sugar mills are still trying to sell the quota sugar they were allowed to put into the domestic market in January. In its statement last month, the Indian government has increased the amount of sugar put into the domestic market in January this year to 1.5 million tons from 1.5 million tons in December 2010.
The price of S-grade sugar on the Kolhapur market in Maharashtra fell by 0.77% to 2,705 rupees/100 kilograms (about US$59.3) last Friday.
The IMA believes that India's sugar output is estimated to increase from 18.8 million tons in the 09-10 sugar production year to 25.5 million tons in 2010.
It is estimated that India has produced 8.4 million tons of sugar during the year of sugar production until January 15. A senior official of the Indian government stated that the smooth harvesting of sugarcane is the main reason why India's sugar production is faster than the same period of last year.
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