Unlock impact: Increase in sugar demand after hotels, restaurants open up

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Mumbai: With the rules under lockdown getting relaxed, demand for sugar has started picking up. According to the reports, sugar consumption in the country is back to the pre-Covid level after an increase in orders from restaurant, hotels, cold drink and ice cream makers and others, who wants to fill their pipeline inventory and also meet their daily consumption.

As India is in unlocking phase, and restaurants and malls also being allowed to open, demand for sugar is up in June, as compared to May 2020. According to the ISMA, along with the summer demand, it can be expected that sugar mills may be able to sell the entire June quota, along with the carry forward from May.

Sugar mills in North India sold sugar as per their monthly quotas given for May, but the sugar mills in West and South India have a small quantity of unsold quota of May. The Government has extended the sale time of May quota and has released 18.5 lakh tons of monthly quota for June 2020.

During the lockdown, mills faced hard time to sell sugar and therefore suffered from financial scarcity and were unable to clear cane dues.

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