Sugar mills fret as prices plunge of sugar and molasses

Data from ISMA shows the average cost of sugar production in Uttar Pradesh and Maharashtra at Rs 37 a kg and Rs 34 a kg

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.

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 as many large mills showing a rise in net profit, following estimates of lower sugar production. There was s sharp rise in the prices of sugar and molasses, to a peak of Rs 36-37 a kg and Rs 8,800