Mumbai, Oct 31 - India's sugar output in the 2007-08 sugar crop year may be 9% lower than an earlier estimate, as more sugarcane farmers in the main sugar growing state of Uttar Pradesh are shifting to wheat cultivation, an industry official said Wednesday. Indian Sugar Mills Association forecasts the country's sugar output in the 2007-08 sugar crop year ending in September will total around 30-million metric tonnes, down from an International Sugar Organization estimate of 33-million tonnes, a senior ISMA official said. However, the country's wheat output is likely to increase by 15% on year to around 86-million tonnes in the April 2007-March 2008 wheat crop year, the official said, driven by strengthening wheat prices. "Farmers are shifting to wheat for its better returns. Also, wheat produces two to three crops in one year, compared to just one harvest for sugarcane," said the official. The state-set floor price for domestically-grown wheat has risen to Rs. 1,000/tonne from Rs. 750/tonne in the previous crop year, Uttar Pradesh state government said recently. "India did not produce enough wheat in the previous crop year, so the government is encouraging more production of the grain," he said. In contrast, India is suffering from a sugar glut, having produced a record harvest of more than 30-million tonnes in the 2006-2007 crop year ended Sept. 30. The country usually produces slightly less than annual domestic demand for around 19-million-20-million tonnes of sugar. Farmers 'are keen to clear their land to start cultivating wheat,' he added. However, this has been delayed as most sugar millers aren't buying any sugarcane to crush, as the state government is expected to announce a lower floor price for this crop year's sugar. However, some sugar farmers have already started selling their sugarcane to mills for around Rs. 500-Rs. 700/ton, less than half of the current state-recommended price of Rs. 1,250-Rs. 1,300/ton. The sugar crushing season that usually commences in October is expected to commence only from mid-November, when the state government is likely to decide on the floor price. [Source: Dow Jones Newswires]