Dip in sugar prices negates part of Centre's incentives to clear cane dues

Steady decline in sugar price has negated part of the benefit offered by the government to help mills clear the rising cane dues and improve liquidity in the value chain.

Sugar prices have declined 3 per cent in the last two weeks, since the government announced the highest ever monthly quota release of 2.45 million tonnes (mt) for March 2019. 

For January 2019 and February 2019, however, the Union Ministry of Food had set a sugar quota of 1.85 mt and 2.1 mt, respectively.

The sharp increase in the monthly quota has increased sugar supply in the spot market, resulting into a decline