INTERVIEW - India may import 3 mln T sugar in 2010/11

By Rajendra Jadhav

MUMBAI (Reuters) - India, the world's biggest consumer of sugar, may import 2.5-3 million tonnes of the sweetener in 2010/11 as domestic output is seen falling short of demand for a third straight year, an industry official said.

"Imports of 2.5-3 million tonnes would be possible in next crushing season that is 2010/11," Prakash Naiknavare, managing director, Maharashtra State Cooperative Sugar Factories Federation, told Reuters in an interview on Wednesday.

He said in 2010/11 India may produce 19-20 million tonnes compared to annual demand of about 23 million tonnes.

Raw sugar futures had rocketed to 28-½ year top on huge imports from the South Asian country, while whites hit a record earlier this year.

In 2009/10 season lower area and drought will keep India's output at 15.3 million tonnes, a little more than last year's output of 15 million tonnes, falling severely short of domestic consumption for a second straight year, a Reuters poll showed.

Farmers have been expanding acreage under cane due to higher prices and that will help trim imports next year, Naiknavare said.

In the current sugar year, which began in October, the industry estimates India may import about 6 million tonnes of sugar.

The state of Maharashtra, India's top sugar producer, has contracted to import 200,000 tonnes of raws and may import 500,000 to 700,000 tonnes more in current crushing season as local prices of the sweetener surge, he added.