Sales pick up as prices bottom out

Sugar prices seem to be bottoming out as northern and western markets, including Mumbai, have seen the prices stabilising at lower levels in the past few days. Reports of higher sugar production had led to a sharp fall in prices in recent months.

“The wholesale sugar prices have improved in some parts of north and west India by ~30 to ~100 a quintal. Sugar sales have also witnessed a slight improvement in the past few days because of buying interest shown by sugar traders,” the Indian Sugar Mills Association (ISMA) said in a note on Wednesday, quoting the data of the consumer affairs ministry.

ISMA also announced the production trend, suggesting a 26 per cent jump in sugar production in the 2017-18 season, which began in October. “As of December 31, 2017, 485 sugar mills were in operation in the country and they produced 10.32 million tonnes (mt) of sugar compared to 8.19 mt produced last year same time,” said the note. Over the past fortnight, sugar production has slowed.

The association said, “As against 300,000 tonnes of raw sugar permitted by the government in September 2017, to be imported and processed into white sugar by December 15, 2017, only 235,000 tonnes of raw sugar has been imported. Of this, about 200,000 tonnes of white sugar has been produced from the imported raws by the mills.” This means the full quota of import has not been utilised.