Sugar prices, which had firmed up by nearly 15 per cent in the past ten days, inched down on Wednesday.
According to Avinash Verma, Director-General of the Indian Sugar Mills’ Association (ISMA), the ex-mill price of sugar in Uttar Pradesh, which had increased by nearly 13 per cent to ₹35 a kg in the past ten days, reduced by ₹1 a kg on Wednesday.
Prices were seen firming up since early February on the back of government’s move to impose import duty and limit release of sugar by mills. A recent study by Crisil points out that domestic sugar prices fell nearly 18 per cent between October 2017 and January 2018 in anticipation of surplus production.
Controlled supplies, the report said, should restrict further decline in sugar realisations before production closes by April.
For farmers, this would mean timely payments for cane, and curbing fresh build-up of arrears on this count.
Cane price dues, which stands at ₹9,500 crore as on December 31, 2017, is among the highest in the last five years. Industry sources suggest cane price arrears could swell up to ₹20,000-22,000 crore by March 31, 2018.
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