India: Sugar mills close early, pushing prices up sharply

Source: bnews.vn More than 30 sugar mills in India's top sugar producing states shut down last week, nearly two months earlier than usual, as cane supplies dwindled due to adverse weather. The early closures, coupled with the government allowing 1 million tonnes of sugar exports, have pushed up domestic prices by 10% in a month. The number of mills shutting down in India this year has increased significantly. An industry official said at least 37 mills in the western state of Maharashtra, neighboring Karnataka and northern Uttar Pradesh have shut down. In the same period last year, only 11 mills were shut. Last year's drought had severely affected sugarcane yields. Supply was depleted in many districts, forcing mills to shut early. Many mills in Maharashtra are struggling to get enough sugarcane, forcing them to cut their capacity by half and are likely to shut down by the end of the month. The early shutdown means India’s sugar output could be lower than initially estimated, ...