Year: 2017

Prices of sugar have risen recently due to the regional imbalance in availability of the sweetener. However, taking the sugar production of 2016-17 (Oct-Sep) and the carryover stock of 7.7 million tonne into account, there is sufficient availability of the commodity to meet the domestic demand. Mills across the country are estimated to have produced about 20.3 million tonne sugar in 2016-17, sharply down from 25.1 million tonne produced in 2015-16. Wholesale sugar prices in Delhi had shot up to a record high of 41 rupees a kg in July as stockists rushed to build inventory, which they had liquidated ahead of the rollout of goods and service tax. Though wholesale prices have eased since then to about 39.50 rupees, retail prices continue to hover at 43-45 rupees. Prices are expected to rise again as supplies are seen tight this season and demand is seen increasing ahead of the festival season.

The government of Jharkhand has floated a tender to buy 2,700 tonne white crystal sugar via NCDEX e-Markets Ltd, the spot arm of National Commodity and Derivatives Exchange. The Department of Food, Public Distribution and Consumer Affairs of Jharkhand seeks to buy ISS Grade S-30 sugar on Aug 17.

India is planning to allow additional 200,000 tonnes of duty-free sugar imports, a government source said on Tuesday, as production fell below consumption in 2016/17 marketing year ending on Sept. 30, according to Reuters. The world’s biggest sugar consumer had earlier allowed duty-free imports of 500,000 tonnes of the sweetener. The country’s opening sugar stock for 2017/18 season starting from Oct. 1 are likely to be 4 million tonnes, down sharply from 7.7 million tonnes this year, the source, who declined to be named, said. Separately, India is planning to raise import tax on vegetable oils like palm oil, soyoil and sunflower oil, the source added.