Sugar prices have firmed up by nearly 15% in the past one week on the back of the government’s move to impose stockholding limit on mills.
The move coupled with the government’s decision to increase the import duty on sugar to 100% from 50% has helped strengthen sugar prices, sources said.
According to Indian Sugar Mills Association (ISMA), the ex-mill prices are currently ruling around Rs 3,550 a quintal. Sugar prices had declined by more than 25% in the last two months and the ex-mill price was ruling at around Rs 3,100 till about a week ago.
Sugar prices, which were on a declining trend since the beginning of the marketing year on October 1, started firming up with the government asking sugar mills to offload only 17 per cent of their January stocks by February end and another 17 per cent of February stocks by the end of March.
ISMA estimates say as on January 16, 2018, the country is likely to witness record bumper production of close to 261 lakh tonnes. ISMA will revisit the production estimate again on March 7.
The industry and trade is anticipating Sugar production to be close to 270 lakh tonnes in the current Sugar season (2017-18).
The anticipated production in 2018-19 is expected to be close to 300 lakh tonnes, ISMA said.