Possibility of better production and high stock, no possibility of a sharp rise in sugar

15-Jul-2024 01:33 PM

New Delhi. Major sugarcane producing states are receiving good rainfall during the southwest monsoon and this trend is expected to continue next month as well.

This is expected to increase the average yield rate of sugarcane and the average recovery rate of sugar from sugarcane.

The production area of ​​sugarcane has already increased by about one and a half lakh hectares compared to last year.

The Union Agriculture Ministry has increased the target of sugarcane production. Sugar mills may receive more sugarcane during the next marketing season (October 2024-September 2025). 

According to ISMA, at the end of the current marketing season i.e. on 30 September 2024, the indigenous industry will have a huge outstanding surplus stock of more than 90 lakh tonnes of sugar, which is about 50 percent more than the traditional required stock of 55-60 lakh tonnes.

Thus, due to the possibility of better production and huge outstanding stock, sugar prices may come under pressure in the coming months when the festival season will be going on in the country.

The government is not ready to allow the export of this surplus stock of sugar and is giving priority to increasing its supply and availability in the domestic sector.

The sugar quota for July has been fixed at 24 lakh tonnes because usually the consumption is less in this month.

A higher amount of free sale quota may be fixed from August to October because the industry has huge stock and there has been a trend of increasing demand and consumption of sugar during the festive season.