Medium-grade sugar was sold at 3,185 rupees per 100 kg in Mumbai and at 3,115 rupees in Kolhapur, both down 10 rupees. “Mills have to make payments to cane farmers as the crushing has gathered pace. So they need more cash flows,” Sugar mills have to pay growers within 14 days of cane purchases, after which the amount is counted as arrears. The state government is empowered to take action against mills defaulting on payments.

Higher production of the sweetener is likely to further weigh on prices of the commodity in the near term. Mills across the country produced 7.05 mln tn of sugar, up 2.1% on year. about 462 sugar mills across the country were crushing cane, compared with 476 mills a year ago. the country’s top producer of sugar, 116 mills had started crushing operations for the season, similar to a year ago. Mills in the state produced 1.89 mln tn of sugar, lower than 2.34 mln tn in the corresponding period last year.