Sugar price declines steadily to nullify a part of govt boosters

Sugar has shed 3% over the past two weeks, since the govt announced the highest ever monthly quota release of 2.45 million tonnes for March

A steady decline in sugar price has nullified some of the benefits offered by the government to help mills clear burgeoning cane dues and improve liquidity in the value chain.

Sugar prices have fallen three per cent over the past two weeks, since the government announced the highest ever monthly quota release of 2.45 million tonnes for March. For January and February, however, the Union Ministry of Food had allocated sugar quotas of 1.85 million tonnes and 2.1 million tonnes respectively.

The sharp increase in the monthly quota has spiked spot sugar supply and impacted prices sharply. While the government has been