Moving to support the cane and milling industry, the government will raise the price floor on sugar by nearly 7 percent, up Rs 2 to Rs 31 per kg. The milling industry had been calling for an increase closer to Rs 35 per kg; such a price hike was likely not viewed favorably by the Modi administration.
The announcements, however, was enough to boost the stocks of mill groups. Meanwhile, cane arrears stand at more than US$3 billion, reports the Business Standard.
As of the end of January, sugar production for the 2018/19 season was up some 8.2 percent YOY at 18.52 MMT. The latest ISMA forecast for the season stands at 30.7 MMT, down more than 5 percent YOY and down 4 percent from the previous forecast. Exports for the season to date are reportedly a little over 1 MMT of sugar, well below government targets; our own forecast pegs exports for the season closer to 2.5 MMT.
According to at least one report, a refiner in the United Arab Emirates has halted operations in recent months due to competition in the region from cheaper Indian sugar. India’s sugar inventories will be waiting to move on any hikes in sugar futures.
India wholesale sugar pricing history
Posted by: Information Services Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.