According to trade data, ex-mill sugar prices in Maharashtra for the S-30 grade have increased to Rs 3,790 per quintal as of February 17. This marks an increase from Rs 3,565 per quintal a month ago and Rs 3,380 per quintal two months ago.
After cooking oils, sugar prices have gone up by 6.5% in a month and are likely to rise further as domestic production is set to fall below expectations. Reports suggest that a drop in sugar output, due to adverse weather and the reopening of sugar exports after two years, has led to a supply shortage, pushing up prices.
Ex-mill sugar prices gone up to Rs 3,790 per quintal
According to trade data, ex-mill sugar prices in Maharashtra for the S-30 grade have increased to Rs 3,790 per quintal as of February 17. The sugar price rise marks an increase from Rs 3,565 per quintal a month ago and Rs 3,380 per quintal two months ago. If you compare with last year, sugar prices have gone up by 6.3% and have surged 12% in the last two months.
Moreover, the industry estimates stated that as of February 15, India’s sugar production was down 12% year-on-year. The decline in production is mainly due to lower sugarcane availability and an early closure of mills.
Sugar mills closing due to sugarcane shortage
Several sugar mills in India generally run for four to six months, from October to May or June. However, this year, several sugar mills are shutting down earlier due to a lack of sugarcane.
As per the latest reports, only 454 sugar mills started operations this year as compared to 505 mills last year. And on February 15, over 77 mills had already closed, much higher than the 28 mills that had shut down by the same date in the previous year. With this, only 377 sugar mills currently operating, compared to 477 mills at the same time last year.
As per the data to from the National Federation of Cooperative Sugar Factories (NFCSF), most of the sugar mills that have closed so far are located in Maharashtra and Karnataka, two of India’s top sugar-producing states,
The NFCSF data further showed that as of February 15, sugar production stood at 197.65 lakh tonnes, down by 27.10 lakh tonnes from 224.75 lakh tonnes produced on the same date last year.
