Sugar prices in India is expected to gain as, the government has increased the purchase price of Sugarcane from farmers.
The government has increased the fair and remunerative price (FRP) for Sugarcane to about 10.6 percent to Rs 255 per quintal for 2017-18 season from Rs 230 per quintal during the 2016-17 season which is expected to remain unchanged.
The increase in FRP is due to the rising cost of production and millers capacity to pay the rate in view of better sugar prices.
Sugarcane output declined by over 12 percent to 306.03 million ton in the current season due to drought in key growing states, Maharashtra and Karnataka. With a normal monsoon forecast, the chances for 2017-18 have altered.