The China Sugar Association raised its forecast for the country's 2003/04 sugar output to 10.05 million tonnes from 9.8-9.9 million tonnes as the domestic crushing season drew to a close, an official said on Monday.
That higher-than-expected output from China, a key importer whose buying interest usually moves global prices, indicates the country might import less. That is likely to disappoint markets.
"There's not much incentive to import if you just look at current domestic and global prices," the official from the association, one of the sugar industry's key overseers, told Reuters by telephone from Beijing.
Chinese producers had already put out 10.01 million tonnes of sugar by the end of May, the official said. "A few small crushers here and there are still crushing. Once they're done, the figure would go up to 10.05 million tonnes," he said.
China's sugar output hit a record of 10.6 million tonnes in 2002/03. The country produces sugar from October to May.
The current sugar crop was hit by drought last year, but the official said the negative impact was smaller than earlier thought.