India sugar steady; increased supplies weigh

MUMBAI, Nov 30 (Reuters) - Indian spot sugar prices were steady on Monday as hopes of improving supplies after most mills in the top producing region began operations outweighed some physical demand, dealers said.

In Kolhapur, a key market in top producer Maharashtra, the price of the most traded S-variety sugar was steady at 3,332.2 rupees ($71.65) per 100 kg.

"Now supplies will increase...crushing is progressing well and imports are continuing," said a Kolhapur-based trader.

Most mills in Maharashtra have begun operations, while crushing is likely to pick up momentum in second biggest producer Uttar Pradesh by this month-end as farmers in the state called off their stir after sugar mills promised higher prices. See [ID:nDEL382072]

In the 2009/10 season, lower acreage and poor rains 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 of about 23 million for a second straight year, a Reuters poll showed. See [ID:nBOM546431]

India's Simbhaoli Sugars Ltd (SIMB.BO: Quote, Profile, Research) may import an additional 200,000 tonnes of raws in the sugarcane crushing season which began last month, a senior company official told Reuters on Monday. See [ID:nDEL002386]

($1= 46.53 rupees) (Reporting by Sourav Mishra; Editing by Harish Nambiar) ((rajendra.jadhav@thomsonreuters.com; tel: 91 22 6636 9241; Reuters Messaging: rajendra.jadhav.reuters.com@reuters.net))

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