In a statement, Indian Sugar Mills Association (ISMA) said sugar production in 2022-23 is estimated at around 340 lakh tonnes after diversion of 45 lakh tonnes of sweetener towards ethanol manufacturing.
Navjot Singh Sidhu, who has been at loggerheads with Singh in the past, also pointed out that the State Assured Price (SAP) of sugarcane had not been raised since 2018 while the input cost grew by 30 percent.
Trade Minister Simon Birmingham says Australia made the WTO referral after previously raising concerns with India over what Canberra says are more than $725 million ($1 billion AUD) in subsidies paid to Indian farmers.
“Our view fundamentally for India market was around 20 percent return but after the rally, it looks like we could do another 10-11 percent return until the end of the year helped by liquidity,” Prabhat Awasthi, Head of Equity & MD, India, Nomura said in an interview with CNBC-TV 18.
For growers like Wagh, a 35-year old from the Marathwada region in the west of Maharashtra, sugar cane has two attributes that make planting the crop lucrative - hardiness and state policies that ensure higher returns.
Mills have so far paid 92 percent of their cane dues to farmers in the 2015/16 marketing year ending on Sept. 30, it said in a statement.
Monsoon rains are the lifeblood of India's agriculture-dependent economy and a week's delay in their onset this year has caused the planting of summer-sown crops such as cotton, rice, soybean and sugar cane to drop by nearly 24 percent.
Sugar cane prices have increased 17 percent on average for the last three years, while sugar prices have been lower by nearly 10 percent year-on-year (YoY).
UR Associates has come out with its report on agri sector. As per the research firm, The area under sugar cane is expected to decline from 10.22 lakh ha in 2011-12 to about 8 lakh ha in 2012-13 while the sugar production is likely to go down from 90 lakh tonne to about 80 lakh tonnes.