Sugar prices have tumbled more than 8 per cent over the past month in the domestic market on account of the higher release of non-levy quota sugar by the government and the expectation of a bumper production. | |
| The government has released 41 lakh tonne of non-levy quota or free-sale sugar for the October-December quarter this year against 37 lakh tonne released during the corresponding quarter last year. |
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| Sugar prices have fallen by Rs 130-150 a quintal, on an average, over the last month in the country. At present, sugar is selling at Rs 1,670-1,680 a quintal. "The delay in lifting the ban on exports and a declining trend in prices, internationally, are also affecting the domestic sugar prices," an industry source said. |
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| Globally, sugar prices have dropped about 10 per cent over the past one month. London sugar futures have fallen from $406 a tonne to $364 a tonne. |
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| "Sugar mills are trying to dispose maximum quantities they can, as there is an apprehension of prices going down further with the progress in crushing," he added. |
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| However, the sugar futures have remained largely stable. M sugar for December delivery at the National Commodity and Derivatives Exchange is trading at Rs 1,763 a quintal. |
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| The International Sugar Organisation has estimated the 2006-07 sugar output at 158.3 million tonne against consumption of 152.5 million tonne. |
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| The country is expected to produce 23 million tonne in the 2006-07 season (October-September) compared with 19.1 million tonne last season. |
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| The Union ministers of agriculture and finance have been making public statements about the likelihood of the withdrawal of the ban. However, no decision has been taken till date. |
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| The ban on sugar exports, imposed in July, is to remain effective till March 31, 2007. |
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