Given that sugar mills across the country have represented a lack of demand and excess supplies that have depressed the ex-mill prices of sugar making it difficult to generate adequate cash flows to pay cane dues to the farmers. ISMA has requested the Department of Food & Public Distribution to extend the duration for sale of allocated sugar quota for December 2020. Furthermore, a request for reduced allocation of sugar quota for January 2021 has also been made by ISMA.
According to market sources, mills have already been constrained to sell their sugar stocks below the Minimum Selling Price (MSP) and U.P state sugar prices are also on the verge of breaching MSP. If the situation keeps moving in the same direction then it would be extremely tough for sugar millers to survive in the ongoing crushing season especially with an outlook of a big crop and the recently announced assistance for exports of sugar which is lesser than that announced in the previous sugar season.
At the moment the prices prevailing across the country are as follows :
– Maharashtra: In the resale market S/30 of 2019-20 is trading at ₹3000 to ₹3030 & S/30 of 2020-2021 is trading at 3010 to 3050.
– South Karnataka: The rates for S/30 at ₹3215 whereas, M/30 rates are ₹3120 to 3175.
– Uttar Pradesh: The rates for M/30 are ₹3230
– Gujarat: The rates for S/30 are ₹3101 whereas M/30 are at ₹3111/Qntl.
– Tamil Nadu: S/30 Sugar rates are ₹3225 to 3275 whereas, M/30 rates are 3275 to 3325.
(All the above rates are excluding GST)