Sugar price crash down on low domestic and export demand
In the past one month due to subdued domestic and export demand, Sugar price in India has declined by as much as 5.5 percent, with some grades of the sweetener trading at the government-set minimum selling price of Rs 29 a kg.
Price of the S-30 grade Sugar has fallen to Rs 29 per kg in Maharashtra this week as demand is tepid. Prices were ruling high before Diwali due to festival season demand.
Demand has declined as winter is setting in when sales of ice-cream and cold drinks, among the largest Sugar consuming segments, reduce. Another reason for the downward trend in prices is the slow pace of exports.
India has a target to export 50 lakh tonnes of Sugar in 2018-19. But shipments, especially of white Sugar, were slow. Mills will have to focus on raw Sugar to boost exports.
The country’s annual Sugar consumption is 255-260 lakh tonnes. Its output in 2017-18 was 322.5 lakh tonnes. India is looking at a surplus Sugar production in 2018-19, though the Indian Sugar Mills Association has reduced its production estimate by 11.26 percent to 315 lakh tonnes.
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