India's sugar prices hit 18-month low as mills struggle to pay for cane

By Rajendra Jadhav MUMBAI (Reuters) - Sugar prices in India have fallen to their lowest level in a year and a half due to ample supply, making it difficult for mills to pay farmers the price of cane as the crushing season gathers pace, industry officials told Reuters. The drop in prices is prompting the industry to demand an immediate revision of the minimum selling price (MSP) to limit losses, which will improve mills’ margins and allow them to make timely payments to millions of cane farmers. “Sugar prices have fallen below the cost of production. This makes it difficult for mills to pay the revised cane price unless sugar prices rise,” said B.B. Thombare, president of the Western India Sugar Mills Association. Wholesale sugar prices in Kolhapur in the western state of Maharashtra have fallen nearly 8% in the past four months to 33,675 rupees ($397.60) a tonne, the lowest since June 2023. The government must quickly raise the MSP above 40,000 rupees a tonne to make cane crushing ...