New Delhi (PTI): The Centre has said sugar prices during the coming festival season would stay at a "reasonable" level as the country is expected to have about 40 lakh tonnes of surplus sugar from the 2008-09 season, ending September.

"The carry-forward stocks from this season will be about 4 million (40 lakh) tonnes, going by the most conservative estimate," the Chief Director with the Directorate of Sugar in the Food Ministry, R P Bhagaria, told reporters here.

He also said sugar prices would remain reasonable during the festival season due to comfortable stock position, though he refrained from commenting on the possible rate of sugar during that period. Retail prices of the sweetener are ruling at Rs 25-27 a kg across the country.

Sugar prices started rising since the beginning of the season following a projected slump in output. Though the government has always maintained that "the perception of a scarcity and not the real shortage of sugar is jacking up the prices", the rates of the sweetener have surged by over 30 per cent since October 2008.

India, the largest consumer of sugar in the world, is projected to produce about 1.55 crore tonnes of sugar this season while it had 1 crore tonnes of surplus sugar from the last season, he said.