* Sugar surplus to rise to 5.3 mln T for 2017/18 crop year -WISMA
* Surplus above previous estimate of 4.5 mln T from nationalassoc.
By Rajendra Jadhav
In the northern Indian
The Indian Sugar Mills Association (ISMA), the nationalindustry association for the world's second-biggest sugarproducer, in March forecast a surplus of 4.5 million tonnesfollowing output of 29.5 million tonnes for the marketing seasonthat started on Oct. 1.
The higher-than-expected surplus could pressure local prices<SUG-ARMKHP-NCX> even lower even after they fell last week totheir lowest since December 2015.
Globally, prices are trading near their lowest in2-1/2 years and an expected surge of Indian exports after thecountry revoked its export tax last month should mean prices maydrop even further.
WISMA is revising its production numbers as mills are stillprocessing sugar cane in both
"Sugar cane yields are much better than last year. Stillmany mills are operational in
Last week,
On March 20, the country also scrapped its 20 percent sugarexport tax as an added incentive for mills to export.
Domestic sugar prices have fallen 16 percent in the past sixmonths. In addition to the oversupply amid the risingproduction, mills were aggressively selling the sweetener tomake payments to sugar cane farmers.(Reporting by Rajendra Jadhav; Editing by ChristianSchmollinger)