Jun 22 2009 4:58PM
MUMBAI, June 22 (Reuters) - Indian spot sugar prices edged up in lower volume trade on Monday due to a delay in the progress of monsoon over key cane growing regions, traders said.
India's south-west monsoon has been delayed by about two weeks in western state of Maharashtra, the biggest sugar producer in the country.
The monsoon, which had been stalled since June 7, revived on June 21 and is likely to cover more parts of Maharashtra, Karnataka and Andhra Pradesh during next 2-3 days, the weather department said on Monday.
"Demand is weak. But if there are some problems with monsoon rains, cane yields may go down," said Mukesh Kuvadia, secretary of Bombay Sugar Merchants Association.
As on June 19, Indian farmers have cultivated cane on 4.15 million hectares, down 3 percent from the same time last year as monsoon rains stalled for two weeks.
In Kolhapur, a key market in largest producer Maharashtra, the price of the most traded S-variety sugar rose 0.24 percent to 2,336.52 rupees per 100 kg.
Traders forecast a 45 percent drop in India's sugar output to 14.7 million tonnes in the crop year to September.
Indian sugar prices may rise in coming months, defying the government's efforts to curb them, as the country approaches its festival season with thin output and low carryover stocks, traders and analysts said.
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