*MUMBAI: *With monsoon setting firm in the Indian subcontinent, the further
advancement towards the State of Maharashtra is believed to bring-in fresh
hopes for improved crop situation for sugar for the next season.

India's southwest monsoon is inching ahead towards key sugarcane growing
areas in India. The showers are expected in the next two to three days. The
India Meteorological Department (IMD) on Tuesday had maintained that fairly
widespread rainfall would occur over parts of Maharashtra, the country's
largest sugar producing state, and over the southern state of Karnataka,
which is the third-largest sugar producer in the country.

Sugarcane yield in India had witnessed a steep fall this year pushing up
local and global price to record highs. Isolated heavy rainfall is likely to
occur over Himachal Pradesh, Punjab, Haryana and the western part of Uttar
Pradesh in the next 24 hours.

The June-September monsoon is crucial as it brings most of the rains in
India, where about 60% of the farmlands are rain-fed. Sowing of
summer-season crops, which includes rice, sugarcane, soybean and cotton,
starts with the onset of the monsoon.

At the onset of the good monsoon, the farmers are anticipating higher cane
output, which is believed to lift sugar production in Maharashtra by 18% to
8.5 million tonnes for the crop year 2010-11. The sugar year runs from
October to September. The farmers are bullish on the good rains and
attractive returns on sugarcane prices, hence most of the farmers are likely
to indulge in cane-cultivation, thereby raising the area under
cane-cultivation by two lakh hectares to 10 lakh hectares in the 2010-11
crop year.

Yields are also expected to improve to 83 tonnes per hectare from 78 tonnes
per hectare in the review period.

-- 
Regards

Hardik Shah

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