2016-2017 which closed on September 30, we produced 203 lakh tonnes and the current season which has just started 2017-2018, we are looking at 251 lakh tonnes of production, said Abinash Verma of ISMA.
According to Indian Sugar Mills Association (ISMA), October-November sugar production was at 39.5 lakh tonne versus 27.8 lakh a year ago same period. ISMA also says sentiment would improve if government agrees to withdraw the stock holding limit earlier. ISMA is now arguing that now the sugar output is plentiful and there is no need for stock limits.
In an interview with CNBC-TV18, Abinash Verma of ISMA shared his views and readings on the same.
Stock holding limit is curtailing some kind of a buying from the traders, he said.
Demand has reduced and the government has introduced this stock holding limit when the production was on the lower side in April 2016 on concerns that the prices might go up now it is almost one-and-a-half years since then and we are looking at higher production this year onwards so there is no reason for continuing with this stock holding limit, he added.
2016-2017 which closed on September 30, we produced 203 lakh tonnes and the current season which has just started 2017-2018, we are looking at 251 lakh tonnes of production, said Verma.
For this year, we are expecting the demand to be about 250-252 lakh tonne, he further mentioned.
On prices he said, it should be stable at a reasonable level of around Rs 35 per kilogram (kg).
For full interview, watch accompanying video...