In the two major States of Maharashtra and Karnataka, the ex–mill prices which were hovering around Rs 3,200-3,250 per quintal for last couple of months have gone down by almost Rs 50-100 per quintal.
India’s sugar production jumped over two fold at 42.9 lakh tonnes during October-November owing to early start of mills this season, according to industry body ISMA.
Sugar marketing year runs from October to September.
According to the data, the country’s sugar production stood at 42.9 lakh tonnes during October-November period of 2020-21 marketing year as against 20.72 lakh tonnes in the year-ago period.
The association attributed the rise in production to early start of sugarcane crushing this season.
“The production trend in the current season so far, appears to be more or less similar to 2018-19 sugar season when 418 sugar mills had produced 40.69 lac tons of sugar, as on 30th November, 2018, except that the diversion of cane juice and B-molasses this season to ethanol will be much more, resulting in a net reduction of around 20 lakh tons of sugar,” ISMA said.
As per the data, sugar production in Uttar Pradesh rose to 12.65 lakh tonnes from 11.46 lakh tonnes.
In Maharashtra, sugar production stood at 15.72 lakh tonnes, compared with 1.38 lakh tonnes in the corresponding period of the previous year.
The higher production is because of earlier start of crushing operations in Maharashtra and higher availability of sugarcane in this season.
Sugar production in Karnataka rose to 11.11 lakh tonnes from 5.62 lakh tonnes.
ISMA pointed out that the average ex–mill sugar prices in most of the major States are reported to be declining with the commencement of current season w.e.f. October 2020, barring few northern States where the prices are more or less steady.
In the two major States of Maharashtra and Karnataka, the ex–mill prices which were hovering around Rs 3,200-3,250 per quintal for last couple of months have gone down by almost Rs 50-100 per quintal.
Similarly, in the southern States also, the ex–mill prices have declined by a similar figure.
“This indicates pressure in domestic market due to high opening balance, expected increase in production in the current season, delayed export programme announcement by government and no decision yet on increase of MSP (minimum selling price) of sugar,” the association said.
Source:-financialexpress.com