-Business Standard
Mills’ body alarmed at likely fall in price; ask govt to negotiate for export to neighbouring countries
Mumbai: With a sharp increase in output in the first three months of the current cane crushing season, the Indian Sugar Mills Association (Isma) has raised the country’s production forecast by four per cent or one million tonnes to 26.1 mt for 2017-18 (October-September).
It has also begun lobbying with the government on early measures to check a likely fall in prices, suggesting opening the door for export.
Total sugar production was reported at 10.33 mt in the December quarter this year, compared to 8.19 mt in the same period last year. Annual sugar consumption is estimated at 25 mt. The additional one mt of output, in addition to the carryover stock of nearly four mt from the earlier season, would worsen mills’ financial health this year, say observers.
“On the basis of satellite images of harvested and unharvested area, the trend of yields and sugar recoveries till now ,as also expected yield/sugar recovery in the balance period of the season, we have revised the sugar production estimate," said Isma.
Another industry body, the All India Sugar Traders Association, had earlier forecast output at 25.7-26.1 mit.
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