Catch Manisha Gupta in conversation with Prafful Vithlani , President All India Sugar Trade Association (AISTA) for more details
A potential loss that sugar makers may face would depend on the quantum of reduction in the sugar prices, Vivek Saraogi suggested
Sugar prices are nudging towards 27 cents per pound owing to crude oil prices touching above $90 per barrel.
The downward revision has been made due to a fall in sugar output in Maharashtra, which accounts for more than one third of the country’s sugar output.
With sugar prices ruling below the cost of production of the mills, the diversion of sugarcane products for ethanol production helps sugar mills to maintain a steady income.
The surge was triggered by India's cut in sugar exports due to rain damage to the sugar cane crop and increased use of sweeteners for biofuel production.
Sugar prices have been up 31% in past year and the supply is high in India. Join Karunya Rao in conversation with Manisha Gupta as they assess the sugar supply and impact of price rise on the commodities market.
A stable domestic market situation and continuing government support for ethanol are supporting factors
Global sugar prices have risen sharply and are set to rise further. While mills are expected to benefit, unexpected changes to government support measures could pose a risk
Global Sugar prices are surging on weak crop from Brazil and expensive India exports. The biofuel story is also supportive of sugar prices. But at these multi-year highs, is this still a buy?
Here's a roundup of the commodities market.
Sugar output has increased 49 percent to 28.18 MT so far in 2017-18 marketing year
Overall, each business had a better performance in terms of volumes, said Ajay S Shriram, CMD, DCM Shriram.
According to a report by ICRA, the domestic sugar production for the sugar year 2018 is likely to increase by 23 percent to around 25.0 million tonnes, driven principally by a recovery in production across India.
In an interview to CNBC-TV18‘s Manisha Gupta, Narendra Murkumbi, Vice Chairman & MD at Shree Renuka Sugars spoke about the rise in sugar prices and whether there would be any stringent measures from the government to ramp up production and curb prices.
Average prices jumped to Rs 35.6 per kilogram from Rs 27.5 per kg in the same quarter last year. This helped in posting a strong performance, said Dhampur Sugar's MD Gaural Goel in an interview to CNBC-TV18.
In an interview to CNBC-TV18‘s Manisha Gupta, Claudiu Covrig, Sr Analyst-Agriculture at Kingsman Platts-S&P Global gave his outlook on the sugar prices going forward.
The states have been told not to depend solely on Union agriculture ministry's cane production data for calculating likely sugar output amid doubts about farm production figures, especially in the case of wheat.
Sugar prices in the local market have risen more than 10 percent in a month on an expected drop in production after back-to-back drought ravaged cane crop in the top producing western state of Maharashtra.
Marketmen said heavy buying by stockists, retailers and bulk consumers, triggered by thin supplies from mills mainly kept sweetener prices in the green zone for the third straight day.
Marketmen said increased offtake by stockists and bulk consumers ahead of new month, attributed rise in sweetener prices.
"In India also, we expect lower production in the coming season mainly on the account of unfortunate drought that state of Maharashtra and Karnataka suffered last year. We expect sugar prices to be firm", Vijay Banka, Wholetime Director & CFO of Dwarikesh Sugar Industries told CNBC-TV18 in an interview.
Watch Manisha Gupta of CNBC-TV18 updating us on all the action from commodities and currency space. She also updates us on the surge in sugar prices.
"In the next 3-4 quarters, any further increase from the current levels would depend on factors like expectations of sugar production during SY2017, sugar mills' own actions on supplies depending upon their inventory-holding capacity and government action on price control measures," he said.
On August 22, Finance Minister Arun Jaitley had held an inter-ministerial consultation on imposing ban on sugar futures trading in an effort to curb speculation and check price rise of the sweetener during festival season.