Domestic Sugar Output Estimated At 322 Lakh Tonnes In Current Season

The Sugar production during current sugar season (Oct, 17-Sep,-18) is estimated to be about 322 Lakh MT as against 202.27 lakh MT during pervious sugar season. Estimated domestic demand is about 250 Lakh MT, according to a latest official press release from Ministry of Consumer Affairs, Food & Public Distribution. The excess sugar production during the current sugar season has adversely affected the market sentiments due to which the ex-mill prices of sugar in the domestic market have fallen sharply and came down in the range of Rs 24.50 to Rs. 26 per kg in the month of May, 2018. Depressed sugar price due to excess sugar production during current sugar season 2017-18 has adversely affected the financial health of sugar mills resulting accumulation of cane price arrears which peaked at Rs. 14538 cr on FRP basis and Rs. 23232 cr on State Advised Price (SAP) basis in the last week of May, 2018. As a result of various measures taken by the Government, the cane price arrears for the current sugar season 2017-18 have come down to Rs. 8396 cr and Rs.16867 cr on FRP and SAP basis respectively as on 15.07.2018.

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