NEW DELHI: India's sugar inventory rose 23.7 percent to 4.7 million tonnes on Nov. 1 from a year ago, industry sources told Reuters on Monday.
November stocks are sufficient to meet about two months of domestic demand.
Sugar inventory on Oct. 1, when the new season began, was 6.5 million tonnes against 5.0 million tonnes a year ago, they said.
Higher stocks could encourage the government to allow a second tranche of exports after a panel of ministers last month permitted one million tonnes of overseas sales, kicking off exports in 2011/12.
Sugar mills have produced 2.2 million tonnes of sugar between Oct.1 and Nov. 30, up from 1.8 million tonnes in the year ago period, the Indian Sugar Mills Association, a producers' body, said recently.
But output in the top producing state of Maharashtra is likely to miss a target of 9.3 million tonnes due to poor cane yields.
Industry and government officials estimate mills to produce 25-26 million tonnes of sugar in 2011/12, and after meeting domestic demand, about 3-4 million tonnes could be available for staggered exports.
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