India: Sugar prices in Maharashtra fall below MSP of Rs 3,100 per quintal due to low demand

Published 2020년 12월 10일

Tridge summary

Sugar prices in Maharashtra have dropped below the minimum support price (MSP) due to poor demand, leading millers to sell at prices below the floor price to make cane payments to farmers. Factors such as a high opening balance, delayed export programme, and an increase in sugarcane cultivation area have contributed to the fall in prices. As a result, sugar mills in Maharashtra owe farmers Rs 351.54 crore in arrears. The sluggish market conditions, further exacerbated by Covid-19 and reduced consumption, have left mills located near the Karnataka border struggling to find traditional markets and are forced to sell older stocks at lower prices to match prices offered by millers in Uttar Pradesh.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Sugar prices in Maharashtra have fallen below the minimum support price (MSP) of Rs 3,100 per quintal because of poor demand. This, in turn has forced sugar millers to sell below the floor price to be able to make cane payments to farmers. A high opening balance at the start of the season, delayed export programme which is yet to be announced by the government and no decision yet on increase of the MSP are some of the reasons being attributed by traders for the fall in sugar prices. Demand from industrial consumers such as ice cream and soft drink manufacturers is also sluggish due to the onset of winter, traders said. The country’s opening stock balance at the start of the season was around 107 lakh tonnes and Maharashtra’s share amounted to some 36 lakh tonnes, which is adding to the problem. Sugar mills in the state owe farmers Rs 351.54 crore in fair and remunerative price arrears in the first month of crushing operations. Prices for S-grade sugar in the state range between Rs ...

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