Spot Market Update: Sugar Stays Near Two Year Low In Muzaffar Nagar

Sugar saw further weakness to trade at Rs 3030 per quintal in Muzaffar Nagar to test a fresh two year low mark on calls of elevated local output. Indian Sugar Mills Association (ISMA) has revised up countrys 2017-18 sugar production further by around 13% at 29.5 million tonnes from its second advance estimate of 26.1 million tonnes. ISMA noted that considering the substantially higher sugarcane yields per hectare reported from the State of Maharashtra and North Karnataka, members of ISMA agreed that there is a need to review the second advance estimates of sugar production. Sugar production up to February 28, 2018 was 23.05 million tonnes. Considering that 479 sugar mills are still crushing and also taking into the account higher yields reported from two states (Maharashtra and Karnataka), ISMA has revised its estimates for the current season to 29.5 million tonnes of sugar, the association said further. Since the start of the year, the domestic Sugar prices extended their decline on prospect of a further increase in local output and weak global cues. The commodity had edged up in October-November 2017 on festive demand but took a reverse direction once it become clear that the strong cane sowing would translate into robust sugar supplies in coming months.