Sugar prices in most markets fell for the fourth consecutive day of trade due to a lower-than-expected cut in production estimates. The association has slashed the country’s sugar output estimate for the second time to 30.7 mln tn in 2018-19 (Oct-Sep) from the earlier estimate of 31.5 mln tn. Last year, mills across the country had produced a record 32.3 mln tn of sugar. The industry had expected that in its revised extimates, ISMA would cut the sugar output to or below 30 mln ton. Demand in wholesale markets is very poor across the country while sugar production is on the rise.
Sugar mills across the country had produced 14.69 mln tn of sugar, compared with 13.56 mln tn during the corresponding period last year, because mills started crushing operations earlier this season. Prices rose 60-70 rupees per 100 kg across markets last week due to talk that the government might increase the minimum selling price of the sweetener, but started falling in the absence of any follow up move from the government. There weren’t many global cues for the commodity. with Intercontinental Exchange shut on account of Martin Luther King Junior Day.
Sugar output estimate for the second time to 30.7 mln tn in 2018-19 (Oct-Sep) from the earlier estimate of 31.5 mln ton. Last year, mills across the country had produced a record 32.3 mln ton of sugar. sugar production is after considering estimated diversion of 5 lac tons (500,000 tn) of sugar into production of ethanol through ‘B’ heavy molasses. Uttar Pradesh sugar production is now pegged at 11.29 mln tn in 2018-19 as against the previous forecast of 12.1 mln tn. Uttar Pradesh produced 12.05 mln tn of sugar in 2017-18. sugar producer Maharashtra is expected to produce 9.5 mln ton, unchanged from the last forecast, as against 10.72 produced in 2017-18.
In Karnataka, another major producer, production is seen unchanged from the previous estimate at 4.2 mln tn in 2018-19, higher than 3.75 mln tn output in 2017-18. sugar mills across the country had produced 14.69 mln tn of sugar compared with 13.56 mln tn during the corresponding period last year because mills started crushing operations earlier this season. mills are expected to export 3.0-3.5 mln tn of sugar in 2018-19 as against the allocated quota of 5 mln ton. Cane arrears of sugar mills that have to be paid to farmers were at 190 bln rupees as of Dec compared with 106 bln rupees in the year-ago period..