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

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 ...