Commodity Tips, Sugar prices fall below Rs 3,000 a quintal despite govt’s bailout measures
Sugar prices have fallen below Rs 3,000 a quintal for the first time in this crushing season due to intensified competition among mills.
Mills in Maharashtra on Tuesday quoted Rs 2,990 a quintal for sale of the S30 variety of sugar to stockists and traders. The realization for mills for the S30 variety of sugar has slumped by over 15 percent since the beginning of this crushing season in October. The M30 variety of sugar continued to trade above Rs 3,100 a quintal at the mill gate.
The current prices are Rs 600-700 below the cost of production, which is estimated at Rs 3,600-3,700 a quintal due to an increase in cane cost in Vidarbha and Marathwada, where sugar mills agreed to pay Rs 200 a quintal premium to avoid a farmers’ protest.
“Sugar prices are consistently going down due to some production =numbers being circulated through social networking sites. A production figure for 2018-19 is being circulated that no one can possibly know today,” said Abinash Verma, director-general of the Indian Sugar Mills Association (ISMA).