India’s sugar production is expected to be more than 30 million tonnes as Uttar Pradesh and Maharashtra, the top two sugar producing states, are set to have record production. Sugar prices in Maharashtra declined by Rs 3/kg in a month, a fall of about 10 per cent.
According to Indian Sugar Mills Association (ISMA), all India sugar production upto March 31, 2018 reached 281.82 lakh tonnes, which is about 92.95 lakh tonnes higher than last year. The estimated sugar production in the current season is about 45 per cent higher than last season, said ISMA. To reduce excess sugar from the country, government announced Minimum Indicative Export Quota of 2 million tonne sugar on March 28, 2018.
“Sugar mills are not willing to export as they are waiting for government subsidy. But, prices in international markets will fall by Rs 1-2/ kg when India starts exporting. Mills should try to take benefit of the prevailing export prices,” said sugar broker Abhijit Ghorade.