Well-supplied Market Keeps Sugar Prices Sweet and Stable
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.