Indian Sugar Imports To Hit 30% Of Demand As Drought Bites - Futures Price Highest Since 1981

Sept. 1 (Bloomberg) -- India, the world’s biggest sugar consumer, may depend on imports to meet almost a third of its demand next year as a drought in the major growing regions threatens cane yield, the country’s biggest refiner said.

Local sugar consumption may total 23 million metric tons in the year beginning Oct. 1 and 30 percent of the supplies will be met through imports, Shree Renuka Sugars Ltd. Managing Director Narendra Murkumbi told reporters today, while attending an industry conference today in New Delhi. Imports this year may reach 4 million tons, the Indian Sugar Mills Association said.

Raw-sugar futures more than doubled this year on concern a drought may curb output in India and excess rain is hampering harvest and yields in Brazil. The weakest monsoon in at least seven years caused drought in 278 of India’s 626 districts this year, damaging crops including sugar cane.

“Deficient rains have compounded the problems,” Farm Minister Sharad Pawar said today at the conference in New Delhi. “It is expected the country would require to supplement its domestic availability of sugar with imports.”

Raw-sugar futures surged to 24.80 cents a pound in after- hours electronic trading today in New York. The price is the highest since February 1981.

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