Sugar prices have been badly beaten down losing nearly 16 percent over the last 6 months in Indian markets and trading at two and a half year lows in the global markets.
This is largely due to an output surge. Sugar output has increased 49 percent to 28.18 million tonne (MT) so far in 2017-18 marketing year, but mills are unable to make cane payment to growers owing to low prices, industry body ISMA said today.
The domestic ex-mill price of sugar has crashed and is hovering at about Rs 3,000 per quintal, about Rs 500-600 per quintal below the cost of production, due to an unexpected surplus availability, it said.
Manisha Gupta shares more details on the cost and pricing mismatch, and outlook on sugar prices in the accompanying video.