Bitter Diwali as sugar prices likely to remain high
Sugar prices are likely to range between Rs 45 and Rs 50 per kg in the retail markets during the festive season as major sugarcane cultivating states, Maharashtra and Uttar Pradesh, will start the crushing season only from November 1.
At a meeting of the committee of ministers in charge of co-operatives in Maharashtra, it was decided that the state would also join Uttar Pradesh in delaying the start of the crushing season. Maharashtra’s powerful politicians who control the state’s sugar co-operatives are keen on
keeping the prices of sugar higher in order help clear losses incurred by them in the previous years, sources say.
The Central Government had earlier asked the states of Uttar Pradesh and Maharashtra to begin crushing of cane in the first week of October in order to help bring down sugar prices.
The Maharashtra government had asked the central government to provide a subsidy of Rs 500 per tonne of sugarcane crushed in the month of October on the grounds that the cane harvested early would have less sucrose content.
“Sugar mills will suffer losses if the crushing season starts early,” BB Thombre, president, Western India Sugar Mills Association, said.
Sugarcane crushing season lasts through the winter months and ends in March every year.
The price of the sweetener has increased sharply from Rs 30 per kilogramme two years ago to Rs 47 in some retail markets as the government allowed price increases to let the co-operatives turn profitable.
With retail prices of sugar increasing, the acreage under sugarcane has increased in many parts of India giving rise to fears of a glut in the coming year.
Source:The Tribune;Published on 25/09/2017