Aug 25 2009 2:30PM
NEW DELHI, Aug 25 (Reuters) - India's sugar stocks have dipped to 4.5 million tonnes, just about enough to meet domestic demand for two months, the Hindustan Times reported on its website on Tuesday. "It's hand to mouth. We are fighting a battle," an unidentified government official was quoted as saying by the website: http://www.hindustantimes.com/News/newdelhi/India-has-just-two-months-sugar-stock/Article1-446631.aspx
A government official told Reuters that the sugar stocks were probably higher than 4.5 million tonnes, but he did not give details.
Indian sugar mills usually start crushing cane in October, but trade officials say operations may begin late this year in some parts of the country because of weak monsoon rains, putting further pressure on the supply situation.
Trade and government officials assess the country's sugar stocks once a month. Earlier this month, trade sources told Reuters that the country's stocks at the end of July had fallen to 6 million tonnes, down 60 percent in a year. [ID:nDEB000866]
India, the world's top sugar user, consumes about 23-24 million tonnes of sugar a year, or about 2 million tonnes a month on an average, but demand surges in the festival season that begins this month.
Domestic output in the current year is estimated to have fallen to 15 million tonnes from 26.4 million tonnes in the previous year, making India a big importer, a year after it exported nearly 5 million tonnes.
An exceptionally dry monsoon season has hit the cane crop this year, raising prospects of more imports by India and helping raw sugar futures surge to their highest in 28- years.
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