Well-sup­plied Mar­ket Keeps Sugar Prices Sweet and Sta­ble

The Economic Times - - Finance & Commodities - Jayashree.Bhos­ale @times­group.com

T SARITA REDDY Pres­i­dent, ISMA We have been in touch with our mem­bers to keep sugar prices at lev­els that are com­fort­able for govt

Pune: Sugar prices will re­main sta­ble as the mar­ket is well sup­plied, millers said even as the gov­ern­ment urged traders to keep the price of the sweet­ener at “com­fort­able” lev­els. The cen­tral gov­ern­ment had also asked the sugar in­dus­try this week to clear cane pay­ment ar­rears.

T Sarita Reddy, pres­i­dent, In­dian Sugar Mills As­so­ci­a­tion (ISMA), the trade body rep­re­sent­ing pri­vate sugar millers in the coun­try, is con­fi­dent that sugar prices will re­main sta­ble.

“Not only is the sup­ply sit­u­a­tion com­fort­able, but we have been con­stantly in touch with our mem­bers to keep sugar prices at lev­els that are com­fort­able for the gov­ern­ment,” said Reddy.

Whole­sale sugar prices in Mum­bai whole­sale mar­ket have re­mained sta­ble at about .₹ 40/kg for over a month. Apart from the stock limit on traders, Reddy said, prices have re­mained sta­ble as ev­ery­one is sell­ing.

Ac­cord­ing to rat­ing agency CARE Rat­ings, “Sugar prices are ex­pected to im­prove marginally or stay firm in the com­ing months backed by a tight de­mand-sup­ply sit­u­a­tion in the coun­try.”

Sugar pro­duc­tion from Oc­to­ber-mid Fe­bru­ary ac­counts for about 60-65% of the an­nual out­put. With a fall in pro­duc­tion in the first four and a half months of sugar sea­son 2016-17, out­put dur­ing the year is ex­pected to re­main at around 21 mil­lion tonnes.

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