Prices of sugar fell in the wholesale markets of Delhi and Muzaffarnagar due to pressure on mills to liquidate their stocks as it is the last day of the month. Sugar prices sold at 2,900-2,950 of S-grade and ?2,950-3,050 of M-grade. In Delhi, prices were down by 15 rupees, while it fell by 10 rupees in Muzaffarnagar. Sale quota for February is not known yet. There are no bulk buyers or wholesellers overall, the situation is getting from bad to worse. Abundant- stock is available in the market and buyers are nowhere to be seen. Even exports are not taking place as overseas market is also down Mills don’t have money to pay dues to farmers.
The All India Sugar Trade Association has pegged the country’s sugar production at 31.5 mln tn in 2018-19 (Oct-Sep) in its first estimate for the year. failure of sugar mills in payment of dues to farmers or partial or delayed payment, Maharashtra government has initiated legal process to confiscate stock of 39 mills. there may be some stability in the sugar market in coming days as millers have started selling the commodity in the retail markets in Maharashtra in order to overcome liquidity crunch.
Uttar Pradesh is expected to produce 11.6 mln ton sugar in 2018-19, while Maharashtra’s output is seen at 10.1 mln ton, the release stated. Sugar production in Karnataka, another major producer, is estimated at 4.2 mln ton. With sugar consumption forecast at 26 mln ton for 2018-19, about 2.5 mn ton may be added to the closing stock after accounting for an estimated export of 3 mln ton.