Sugar prices this festive season are expected to remain at their current highs of Rs 36,000/mt primarily because of the decline in sugar production for the second year due to deficit rains in Maharash
Sugar prices this festive season are expected to remain at their current highs of Rs 36,000/mt primarily because of the decline in sugar production for the second year due to deficit rains in Maharashtra and Karnataka, and the decline in domestic sugar stocks in sugar year 2016.
The high prices could continue for the next three to four quarters. Global production has also declined.
Sabyasachi Majumdar, senior vice president, ICRA said: “In the next 3-4 quarters, any further increase from the current levels would depend upon the following factors: expectations of sugar production during sugar year (SY) 2017, sugar mills’ own actions on supplies depending upon their inventory-holding capacity, and the government action on price control measures.”
