>India's sugar output may be hampered, support price .

London - India's sugar output during 2009-10 could be more sluggish than previously expected, and that will support prices in the coming months, the International Sugar Organization said in its monthly report published Friday.

The ISO said it would also mean the country will need to import larger quantities of sugar, reinforcing the groups' forecast for a world deficit.

The ISO forecasts world sugar production to fall short of consumption by between 3 million and 4 million metric tons in 2009-10.

A lower than anticipated recovery in India's sugar output during 2009-10 would further reinforce the ISO's view that the world sugar balance will be in deficit for one more season, the monthly report said. It would also keep the country "firmly in the league of the world's top importers," it said.

"Should poor monsoons materialize, world market prices for sugar will remain supported over the coming months, despite an imminent string of record export volumes emerging from Brazil between now and the end of its Centre-South harvest expected for December," the ISO said.

India's production in 2008-09 fell by 44.5% relative to 2007-08 to 14.7 million tons. Hopes that output rebounds may be dashed by weather predictions of an El Nino pattern forming this year, the ISO said.

"An El Nino weather anomaly in the equatorial Pacific Ocean may lead to a significant weakening of the annual Indian monsoon rains, negatively impacting output growth in the country," the ISO said.

Source: COMMODITIESCONTROL