India's sugar inventory rose 23.7 percent to 4.7 million tonnes on November 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 October 1, when the new season began, was 6.5 million tonnes against 5.0 million tonnes a year ago, they said.
Sugar mills have produced 2.2 million tonnes of sugar between October 1 and November 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.