India sugar prices at record high in Delhi; long-term view bearish.

Prices of sugar inched up in the key wholesale markets of north India and touched a record high in Delhi as supplies were disrupted due to religious processions on some routes connecting western Uttar Pradesh to the national capital. Sugar prices also rose in the key spot markets of Maharashtra as millers quoted higher prices.

Uttar Pradesh issues notice to sugar mills for 2016-17 cane dues.

The Uttar Pradesh government has issued notice to sugar mills in the state for non-payment of cane dues to farmers for 2016-17 (Oct-Sep) season. Notices have been issued to mills owned by Modi Sugars, Bajaj Hindusthan Sugar, Simbhaoli Sugars, Mawana Sugars, Rana Sugars and others as their payment process is slow. Mills in the state owed 25.35 billion rupees as of Monday to sugarcane farmers for the 2016-17 season. If the mills are unable to clear the dues in 15 days, they have to explain the reason for the inability to pay.

Uttar Pradesh sees 2017-18 sugar output 9.2-9.5 million tonne, up 5-9% year on year.

Uttar Pradesh is likely to peg sugar output for 2017-18 (Oct-Sep) at 9.2-9.5 million tonne, up 5.1-8.6% on year. Mills in the state had produced a record 8.75 million tonne sugar a year ago, surpassing the previous high of 8.47 million tonne produced in 2006-07. For the next season, Uttar Pradesh sees production reaching about 9.2 million tonne to 9.5 million tonne as the acreage of sugarcane is rising. The acreage of sugarcane in Uttar Pradesh, the country top cane producing state, is likely to rise 5% in 2017-18 (Jul-Jun).