The sugar industry is floating under a glut and striving to export because of low global prices. As per reports, the government is likely to provide financial support to cane farmers for produce sold to sugar mills. Sugar stocks are confusing at this point, but the fact is that clarity will come at the moment when the government announces some more relief measures which the entire industry is awaiting.
Marketmen said mounting stocks in the market on relentless supplies have formed mills against muted demand from bulk consumers as well as stockists, which have dragged sugar prices down.
A group of traders expressed their views saying that “At this point much depends upon what the government is giving to the ailing industry and then we can take a convincing call on where the sugar industry is heading. Under the current fundamentals, it doesn’t seem that the sugar prices are going to move up under any circumstances and even international sugar prices look very weak.” Adding to the above they also shared that the sugar mills would face difficulties in a storage of sugar by the beginning of 2019 if the Govt. delays in declaring the additional MIEQ.
Sugar prices tumbled down to Rs.80-100 per quintal at the wholesale market in the national capital since Wednesday following slackness in demand at existing levels from stockists and bulk consumers amid ample stocks on record production.