Mills fret as prices of sugar and molasses plunge

Price of molasses has declined to Rs 900 a tonne in UP and Rs 2,200 a tonne in Maharashtra. At the peak last year, this was Rs 8,300 a tonne

Sugar mills’ revenue and profit are likely to be under pressure in the ongoing crushing season (the current sugar year, 2017-18, formally began on October 1), after recovering marginally in the 2016-17 season. 

For, there has been a sharp decline in their product prices, following estimates of higher cane output. 

Seasons 2014-15 and 2015-16 were bad for profitability; things improved in 2016-17, with many large mills showing a rise in net profit, following estimates of lower sugar production. There was a sharp rise in the prices of sugar and molasses, to a peak of Rs 36-37 a kg and Rs 8,800 a