Sugar shares have been on a tear of late, thanks to rising sugar price, and the government is trying to get a handle on sugar prices in check before the festive season demand kicks in.
The upswing in the shares of sugar mills appears to have been arrested for now, with the government putting pressure on sugar producers to release more stock in the market.
Sugar shares have been on a tear of late, thanks to rising prices. The government has been trying to get a handle on sugar prices before the festive season demand kicks in.
The government has prepared a list of sugar mills which is holding back stock. According to officials, 70 percent of those mills are from Maharashtra and the rest from other parts of the country.
For now, the demand is not strong, but it will keep rising from next week as the festive season begins with Raksha Bandhan, and continue all the way till Diwali.
Sugar production in Maharashtra is expected to be 40 percent lower this year, and the governments—both Centre and state—are taking steps to ensure that consumers don’t suffer high prices.
So far in 2016, domestic sugar prices have risen 45 percent in line with the surge in global sugar prices. Sugar prices are expected to stay high globally because of crop shortage.
The International Sugar Organization estimates global sugar consumption to outpace production by 3.8 million tons in 2016-2017 season. That’s a smaller than an earlier estimate of 6.7 million tonnes, but still a wide enough deficit to push up prices.
And while the government is trying to regulate the local sugar prices by curbing stocking, industry people say lower production and back-to-back droughts are to blame for high prices.The Great Diwali Discount!
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